India’s wholesale inflation jumped to 2.61% in May, driven by soaring prices in the food and energy sectors

The annual inflation rate calculated based on the All-India Wholesale Price Index (WPI) increased to 2.61% in May 2024, an increase compared to the same period last year. This upward trend was primarily due to higher prices observed across a variety of sectors, including grocery, processed foods, crude oil and natural gas, mineral oils and other manufacturing categories.

Month-to-month change in major WPI groups:

1. Basic items:

The staples index, representing 22.62% of the WPI, recorded a slight increase of 0.54% in May 2024, reaching 187.7 from 186.7 in April 2024. This increase was due to the increase in grocery prices (1, 48%) and minerals (1.08%). %), despite declines in non-food items (-1.26%) and crude oil and natural gas (-3.56%).

2. Fuel and power:

The fuel and energy group with a weight of 13.15% in WPI recorded a significant decline by 2.71% in May 2024, to 150.6 from 154.8 in April 2024. This decline was mainly influenced by lower electricity prices (- 11.67%), while the prices of mineral oils and coal remained unchanged.

3. Manufactured products:

Industrial products, which account for the largest share at 64.23% of WPI, saw a slight increase of 0.64% in May 2024, rising to 141.7 from 140.8 in April 2024. Among the various subgroups, 13 reported price increases, especially basic metals, food, computer and electronic products and electrical equipment. On the other hand, eight groups saw price declines, including for finished metal products, chemicals, tobacco products and other transportation equipment.

The WPI Food Index, representing 24.38% of WPI, increased from 183.6 in April 2024 to 185.7 in May 2024. This increase resulted in the inflation rate based on the WPI Food Index from 5.52% in April 2024 to 7.40% in May 2024, reflecting high inflationary pressure in the food sector.

This data highlights the challenges posed by rising food prices and input costs contributing to the overall inflationary environment, as reflected in the latest WPI data for May 2024.