Wholesale Price Index Reaches All Time High Of 12.94% In May 2021
The wholesale worth index (WPI) primarily based inflation in May hit an all-time excessive of 12.94 per cent owing to rising crude oil costs and people of manufactured merchandise. Overall it was the fifth consecutive month when WPI breached the upper ranges.
Earlier it was at 10.49 per cent stage in April, which was a 11-year excessive.
Apart from rise in crude oil costs and better prices of manufactured merchandise, low base impact additionally led to WPI inflation going by the roof in May 2021. In May 2020, WPI inflation was at (-) 3.37 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 i.e. petrol, diesel, naphtha and furnace oil among other things as well as manufactured products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry stated.
The manufactured merchandise inflation rose to 10.8 per cent in May 2021 as in comparison with 9 per cent within the earlier month, whereas core inflation spiked to 10 per cent in comparison with 8.3 per cent in April 2021.
Fuel and energy inflation additionally went up by 37.6 per cent throughout May, towards 20.94 per cent in April.
At the identical time although, meals costs confirmed a slight fall and have been at 4.31 per cent in May 2021. Onion costs nevertheless witnessed a leap and have been at 23.24 per cent in May. They have been within the destructive territory in April 2021 at (-) 19.72 per cent.