New Delhi, June 14: Due to a steep increase in the prices of fuel, metal, chemicals, and food products, India's annual wholesale price-based inflation rose to 15.88 percent in May, the highest level in over ten years, according to the government data released on Tuesday.
The WPI inflation has been in double digits for 14 months in a row, standing at 15.08 percent in April and 14.55 percent in the previous month.
According to data issued by the Ministry of Commerce and Industry in May 2021, WPI-based inflation was 13.11 percent.
In May 2022, the month-over-month change in the WPI index was 1.38 percent as compared to April 2022.
The high rate of inflation in May 2022 is mainly due to the uptick in rates of mineral oils, crude petroleum & natural gas, food articles, basic metals, non-food articles, chemicals & chemical products and food products etc as compared to the same month of the previous year.
The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade, has announced the wholesale price index figures in India (Base Year: 2011-12) for May 2022 (Provisional) and March 2022. (Final).
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Primary goods, which account for 22.62 percent of the WPI index, grew by 2.80 percent in May 2022 to 179.8 (provisional) from 174.9 (provisional) in April 2022. In May 2022, prices of crude petroleum and natural gas grew by 8.52 percent, food articles by 2.40 percent, minerals by 1.73 percent, and non-food articles by 1.52 percent, compared to April 2022.
In May 2022, the Fuel & Power index climbed by 2.25 percent to 154.4 (provisional) from 151.0 (provisional) in April 2022. Mineral oil prices increased by 3.34 percent in May 2022 compared to April 2022. Coal and electricity prices have remained steady.
The index for Manufactured Products jumped by 0.56 percent to 144.8 (provisional) in May 2022 from 144.0 (provisional) for April 2022.
19 of the 22 NIC two-digit groups for manufactured products have seen an increase in rates, while three have seen a drop. Chemicals and chemical products, food, textiles, machinery and equipment, and electrical equipment all contributed to the price rise. Basic metals, computers, electronic and optical products, and other manufacturing are among the groups that have seen prices fall in May 2022 compared to April 2022.
The Food Index, which includes 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products category, grew from 172.9 to 176.1 in May 2022. Based on the WPI Food Index, the rate of inflation jumped from 8.88 percent in April 2022 to 10.89 percent in May 2022.