The wholesale price-based inflation accelerated to a record high of 12.94 per cent in May from a rise of 10.49 per cent in April, on rising prices of crude oil and manufactured goods.
Significantly, this is the highest rate of WPI inflation in the current series. The previous high mark was observed in April.
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The monthly rate of inflation, in May 2020 stood at (-) 3.37 per cent.
On a sequential basis, the month over month change in WPI index for May 2021 as compared to April was 0.76 per cent.
“The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared the corresponding month of the previous year,” the Ministry of Commerce and Industry said in a statement on WPI.
Inflation in fuel and power basket spiked to 37.61 per cent during May, against 20.94 per cent in April. In manufactured products, inflation stood at 10.83 per cent in May, against 9.01 per cent in the previous month.
However, inflation in food articles eased marginally to 4.31 per cent in May, even as onion prices spiked. Inflation in onion stood at 23.24 per cent in May, against (-) 19.72 per cent in April.
The RBI in its monetary policy earlier this month kept interest rates unchanged at record lows and committed to maintaining an accommodative policy stance to support growth.
RBI pegged retail inflation at 5.1 per cent in this fiscal ending March 2022, with upside risks from higher commodity prices and re-emergence of higher supply constraints amidst the current phase of lockdowns.
Retail inflation data for May is scheduled to be released later in the day.
