WPI inflation increases to 2.61% in May, driven by food, petrol, gas, oil prices

WPI inflation in May: Wholesale inflation increased to 2.61 per cent for the month of May, primarily due to increase in prices of food articles, manufacturing of food products, crude petroleum and natural gas, mineral oils, and other manufacturing. In April, WPI inflation was 1.26 per cent, fuelled by an increase in food articles and fuel and power prices. Before that WPI was recorded at 0.53 per cent in March. 

The month-over-month change in the WPI index stood at 0.20 per cent as compared to April inflation, stated the Ministry of Commerce & Industry.

The WPI Food Index, consisting of food articles from the primary group that includes cereals, paddy, wheat, pulses, vegetables, potato, onion, fruits, milk, eggs, meat and fish, and food products from manufactured products group has increased to 185.7 in May from 183.6 in April. The rate of inflation in this major group increased from 5.52 per cent in April to 7.40 per cent in May. 

When it comes to the primary articles index, it increased by 0.54 per cent to 187.7 in May from 186.7 in April. Prices of food articles and minerals increased by 1.48 per cent and 1.08 per cent in May, as compared to April, while prices of non-food articles and crude petroleum and natural gas declined by 1.26 percent and 3.56 per cent in May over April. 

The fuel and power index declined by 2.71 per cent to 150.6 in May from 154.8 in April. Prices of mineral oils and coal remained unchanged in May as compared to April, but prices of electricity declined by 11.67 per cent in May. 

When it comes to manufactured products, the index for this major group increased by 0.64 per cent to 141.7 in May from 140.8 for April. 

“Out of the 22 NIC two-digit groups for manufactured products, 13 groups witnessed an increase in prices, 8 groups witnessed a decrease in prices and 1 group remained constant. Some of the important groups that showed month-over-month increase in prices are basic metals; food products; computer, electronic & optical products; electrical equipment; other manufacturing etc. Some of the groups that witnessed a decrease in prices are fabricated metal products, except machinery & equipment; other non-metallic mineral products; chemicals & chemical products; tobacco products; other transport equipment etc. in May, 2024 as compared to April, 2024,” it said.