High fuel, vegetable prices push WPI inflation to a 14-month high of 4.43% in May
15 Jun 2018
The annual rate of inflation in India, based on the wholesale price index (WPI), shot up to a 14-month high of 4.43 per cent in May on the back of a steady increase in prices of petrol and diesel as also vegetables.
The previous high was in March 2017, when the WPI inflation stood at 5.11 per cent.
The WPI-based inflation stood at 3.18 per cent in April and 2.26 per cent in May last year.
Inflation rate for food articles stood at 1.60 per cent in May 2018 against 0.87 per cent in the preceding month, official data released on Thursday showed.
Inflation rate for vegetables was up 2.51 per cent in May, while in the previous month it was (-0.89 per cent.
Inflation rate fort ‘fuel and power’ rose sharply to 11.22 per cent in May from 7.85 per cent in April as prices of domestic fuel increased in line with rising global crude oil rates.
Inflation rate for potatos climbed to 81.93 per cent in May, against 67.94 per cent in April.
Prices of fruits recorded double-digit inflation at 15.40 per cent, while pulses saw a deflation of 21.13 per cent.
The WPI inflation for March was revised upwards to 2.74 per cent from the provisional estimate of 2.47 per cent.
The firming up of inflation, both wholesale and retail, has prodded the Reserve Bank of India to a hike in its policy lending rates by a quarter per cent in its second monetary policy review for the fiscal.
Data released earlier this week showed retail inflation jumping to a 4-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and fuel. RBI mainly takes into account retail inflation data while formulating monetary policy.