NEW DELHI: The wholesale price-based inflation accelerated to a record high in 12.94 percent in May, on increasing costs of petroleum and manufactured products.
Low foundation result also led to this spike in WPI inflation in May 2021.
In May 2020, WPI inflation has been (-) 3.37 percent.
This is actually the fifth consecutive month of uptick found from the wholesale price index (WPI)-based inflation.
Back in April, 2021, WPI inflation hit double digit at 10.49 percent.
“The yearly rate of inflation, according to yearly WPI, was 12.94 percent for the month of May, 2021 (over May, 2020) compared to (-) 3.37 percent in May 2020.
“The high rate of inflation in May 2021 is mostly because of reduced base effect and increase in prices of crude oil, mineral oils viz.
Petrol, petrol, naphtha, furnace oil etc.
.
fabricated products when compared with corresponding month of the preceding calendar year,” the trade and industry ministry said.
Inflation in petrol and electricity basket owes to 37.61 percent throughout May, against 20.94 percent in April.
In fabricated goods, inflation dropped at 10.83 percent in May, against 9.01 percent in the past month.
Yet, inflation in food posts dropped marginally to 4.31 percent in May, also as onion costs spiked.
Interest in onion stood at 23.24 percent in May, against (-) 19.72 percent in April.
The RBI in its own fiscal policy earlier that month kept interest rates unchanged at record rates and committed to keep an accommodative policy position to encourage expansion.
RBI increased retail inflation in 5.1 percent in this fiscal end March 2022, with upside risks from higher commodity costs and re-emergence of greater distribution limitations amidst the present period of lockdowns.
Retail inflation information for May is scheduled to be published later in the daytime.