The wholesale price-based inflation was recorded high up to 12.94 percent in May. This was majorly due to rising in the price of rising prices of crude oil and manufactured goods. In April the WPI inflation rate was at 10.49%. This is the fifth straight month of the rise seen in the wholesale price index (WPI)-based inflation. The annual rate of inflation, based on monthly WPI, was 12.94 percent for May 2021 (over May 2020) as compared to (-) 3.37 percent in May 2020.
Ministry of commerce and industry said that The high rate of inflation in May 2021 is primarily due to the low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil, etc. and manufactured products as compared the corresponding month of the previous year. Prices of Non-food Articles increased in May 2021 (as compared to April 2021) by 1.26%, Crude Petroleum & Natural Gas by 0.67% and Food Articles declined by 1.48%
They further added that Out of the 22 NIC two-digit groups for Manufactured products, 17 groups have witnessed an increase in prices, 4 groups have witnessed a decrease in May 2021 as compared to April 2021. The Food Index consisting of ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group has decreased by 0.19% from 158.9 in April 2021 to 158.6 in May 2021.
The WPI for May 2021 has been compiled at a weighted response rate of 72 percent, while the final figure for March 2021 is based on the weighted response rate of 91 percent.
Further details of WPI for June 2021 will be released on July 2021.