India's Wholesale Inflation Climbs To 15-Month High In May
The Wholesale Price Index rose by 2.61% in May, compared to 1.26% in April.
India's wholesale inflation climbed to the highest in 15 months, led by higher prices of manufactured products and food.
The Wholesale Price Index rose by 2.61% in May, compared to 1.26% in April, according to data released by the Ministry of Commerce and Industry on Friday.
Expectedly, the tide has turned for wholesale inflation in India, said Suman Chowdhury, chief economist and head of research at Acuité Ratings. Clearly, a gradual hardening in global commodity prices, the increase in logistics costs due to geo-political risks, the seasonal rise in food prices, and strong industrial activity in India are driving the uptick in wholesale prices, he said.
Primary goods inflation has seen a significant uptick to 7.7% in May 2024, due to higher food inflation and a bump in the landed prices of crude oil, Chowdhury said. Unlike retail inflation, fuel and power inflation for the industry has been positive for the last two months on account of an increase in power tariffs. The most significant change, however, is in manufacturing inflation, reflecting stronger demand from the industrial sector, according to him.
WPI Inflation Internals (Year-On-Year)
Inflation in manufactured products—the largest component of the index—rose 0.78%, compared to a contraction of 0.42% in April.
Primary-article inflation was 7.2%, compared to 5.01% in April.
Inflation in food articles rose 9.8%, as against 7.7% last month.
Vegetable inflation rose 32.4%, compared to 23.6% in the preceding month.
Inflation in non-food articles contracted 4% after contracting 4.4%, in the previous month.
Fuel and power inflation increased by 1.4% in May after rising by 1.4%.
