WPI inflation rises to a high of 15.88% in May
According to government data released on Tuesday, Wholesale Price Index (WPI)-based inflation rose to a record high of 15.88 per cent in May, from 15.08 per cent in April.
Rising food and crude oil prices pushed WPI inflation to a new high in May, despite the government resorting to calibrated efforts to control prices. This is the 14th consecutive month of inflation since April last year. In the same month last year, WPI inflation stood at 13.11 per cent.
According to a PTI report, WPI-based inflation at 15.88 per cent is the highest print on record in the current (2011-12) series. Taking the old series into account, the last time WPI inflation was higher was in August 1991, when it stood at 16.06 per cent.
“The higher rate of inflation in May 2022 is mainly due to increase in prices of mineral oils, crude petroleum and natural gas, food items, basic metals, non-food items, chemicals and chemical products and food products etc. over the previous year. This month,” the Ministry of Commerce and Industry said in a statement.
Inflation in food articles stood at 12.34 per cent in May, as prices of vegetables, wheat, fruits and potatoes showed a sharp rise compared to a year ago. Inflation rate was 56.36 percent in vegetables, 10.55 percent in wheat and 7.78 percent in egg, meat and fish.
Inflation in 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.
Meanwhile, retail inflation declined to 7.04 per cent in May from an eight-year high of 7.79 per cent in April this year, according to data released by the National Statistical Office (NSO) on Monday. However, the figure of 7.04 per cent remained above the Reserve Bank’s inflation target for the fifth consecutive month.
In order to beat the extremely high inflation, the RBI has increased its key interest rates twice by 40 basis points and 50 basis points, respectively, in May and June.
Read more: Retail inflation eases to 7.04% in May from 8-year high of 7.79% in April
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