India’s Wholesale Inflation Rises To Record 15.88% In May As Against 15.08% In Apr

Mumbai: India’s Wholesale Price Index (WPI) surged to a record high of 15.88% in May, up from 15.08% in April, data released by the government showed. The WPI inflation was 13.11% in May 2021.

“The higher rate of inflation in May 2022 is mainly due to an increase in the prices of mineral oils, crude petroleum and natural gas, food items, base metals, non-food items, chemicals and chemical products and food products etc. as compared to the corresponding month of the previous year,” the commerce and industry ministry said in a statement.

WPI inflation has remained in double digits for the 14th consecutive month since April last year and has been on an upward trend for three consecutive months.

Inflation in food articles stood at 12.34 per cent in May, driven by the sharp rise in prices of vegetables, wheat, fruits and potatoes compared to a year ago.

Inflation was 56.36 per cent in vegetables, 10.55 per cent in wheat and 7.78 per cent in eggs, meat and fish. Inflation in the fuel and power basket was 40.62 per cent, while in manufactured products and oilseeds it was 10.11 per cent and 7.08 per cent, respectively.

Inflation in the fuel and power basket was 40.62 per cent, while in manufactured products and oilseeds it was 10.11 per cent and 7.08 per cent, respectively.

Inflation in crude petroleum and natural gas stood at 79.50 per cent in May. Retail inflation in May remained above the Reserve Bank’s inflation target of 7.04 per cent for the fifth consecutive month.

To control inflation, RBI had increased its key interest rates by 40 basis points in May and by 50 basis points in June. The central bank last week also raised the inflation forecast for 2022-23 by 100 basis points to 6.7 per cent.

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