WPI inflation for May at 15.88% as against 15.08% in April

The annual rate of inflation has been recorded at 15.88 per cent for the month of May as opposed to 15.08 per cent in the month of April. In May 2021, the rate of inflation was 13.11 per cent. 

“The annual rate of inflation is 15.88 per cent (Provisional) for the month of May, 2022 (over May, 2021) as compared to 13.11 per cent in May, 2021. The high rate of inflation in May, 2022 is primarily due to rise in prices 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 corresponding month of the previous year,” stated the Ministry of Commerce and Industry. 

The ministry added that the on-month change in WPI index for the month of May stood at 1.38 per cent, compared to April, 2022.

WPI food index that consists of food articles from the Primary Articles group and food product from the Manufactured Products group have increased from 172.9 in April to 176.1 in May. The rate of inflation based on the WPI Food Index increased from 8.88 per cent in April to 10.89 per cent in May. 

The index for the Primary Articles increased by 2.80 per cent to 179.8 in May from 174.9 in April. Prices of Primary Articles such as crude petroleum & natural gas (8.52 per cent), food articles (2.40 per cent), minerals (1.73 per cent) and non-food articles (1.52 per cent) increased in May. Food articles include items such as cereals, paddy, wheat, pulses, vegetables, potato, onion, fruits, milk, and eggs, meat and fish. 

Fuel & Power index that include items such as LPG, petroleum and HSD, increased by 2.25 per cent to 154.4 in May from 151.0 in April. Prices of mineral oils (3.34 per cent) increased in May, while prices of coal and electricity remain unchanged. 

The Manufactured Products index increased by 0.56 per cent to 144.8 in May from 144.0 for the month of April. 

Of the 22 NIC two-digit groups for manufactured products, 19 have witnessed increase in prices while three groups have witnessed a decrease. “The increase in prices is mainly contributed by chemicals and chemical products, food products, textiles, machinery and equipment, and electrical equipment. Some of the groups that have witnessed decrease in prices are basic metals, computer, electronic and optical products, other manufacturing in May, 2022 as compared to April, 2022,” the ministry stated.

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade release the provisional figures of Wholesale Price Index (WPI) on the 14th of every month or the next working day.

Also read: India's retail inflation eases to 7.04% in May, but remains above RBI comfort level