This is an archive article published on June 14, 2024

India’s wholesale inflation rises to 15-month high of 2.61% in May

For the month of May, the elevated inflation is primarily due to increase in prices of crude petroleum and natural gas, mineral oils, food articles, manufacture of food products, among others.

Wholesale price inflation (WPI) rose to 2.61 per cent in May (File Image)

2 min readNew DelhiJun 14, 2024 12:35 PM IST First published on: Jun 14, 2024 at 12:12 PM IST

Wholesale price inflation (WPI) rose to 2.61 per cent in May, as against 1.26 per cent in April on a month-on-month basis (MoM), as per data released by centre on Friday (June 14). Marking third consecutive increase this year, this is the highest wholesale inflation India witnessed since February 2023.

For the month of May, the elevated inflation is primarily due to increase in prices of crude petroleum and natural gas, mineral oils, food articles, manufacture of food products, among others, the release said. Inflation in food articles rose 9.82 per cent in May, as against 7.74 per cent in April whereas inflation in vegetables was 32.42 per cent in May, up from 23.60 per cent in the previous month.

Index Numbers and Annual Rate of Inflation (YoY in %)*
All Commodities/Major Groups	Weight (%)	March 2024		April 2024 (P)		May 2024 (P)
All Commodities/Major Groups	Weight (%)	Index	Inflation	Index	Inflation	Index	Inflation
All Commodities	100.00	151.4	0.26	153.0	1.26	153.3	2.61
I. Primary Articles	22.62	183.2	4.57	186.7	5.01	187.7	7.20
II. Fuel & Power	13.15	152.1	-2.75	154.8	1.38	150.6	1.35
III. Manufactured Products	64.23	140.1	-0.85	140.8	-0.42	141.7	0.78
Food Index	24.38	180.4	4.82	183.6	5.52	185.7	7.40

Source: PIB

Change in major groups of WPI (MoM):

1. Primary Articles (weight 22.62 per cent): The index for this major group increased by 0.54 per cent to 187.7 (provisional) in May from 186.7 (provisional) for the month of April this year.

2. Fuel & Power (Weight 13.15 per cent): The index for this major group declined by 2.71 per cent to 150.6 (provisional) in May from 154.8(provisional) for the month of April.

3. Manufactured Products (Weight 64.23 per cent): The index for this major group increased by 0.64 per cent to 141.7 (provisional) in May from 140.8 (provisional) for the month of April.

The rise in May WPI is in contrast to the retail inflation data for the month which eased to 1 year low of 4.75 per cent in May. The Reserve Bank of India (RBI) mainly takes into account retail inflation while framing monetary policy.