May WPI inflation at 22-month low, lowest since July 2017; but onion prices rise
By: FE Online | Updated: June 14, 2019 12:52:25 PM
The May WPI inflation eased to 2.45 per cent in May, from 3.07 per cent in April, owing to fall in food prices, official data released Friday showed
The May WPI inflation eased to 2.45 per cent in May, from 3.07 per cent in April, owing to fall in food prices, official data released Friday showed. The wholesale inflation number stands at 22-month low, which is the lowest since July 2017. The CNBC-TV18 poll of analysts had predicted the WPI inflation to be at 3.06 per cent. In May 2018, the inflation was recorded at 4.80 per cent. The March WPI inflation was also revised to 3.10 per cent from 3.18 per cent earlier. Wholesale inflation is the rate of rise in wholesale prices and is gauged by Wholesale Price Index (WPI).
The inflation in manufacturing products was recorded down at 1.28 per cent as against 1.72 per cent (MoM). The rise in vegetables was recorded down at 33.15 per cent as against 40.65 per cent (MoM). The prices of eggs, metal and fish were down 5.64 per cent as against 6.94 per cent. However, onion prices spiked during the month with inflation at 15.89 per cent, as against (-) 3.43 per cent in April.
Earlier this week, the government data showed that the consumer inflation rose to a seven-month high of 3.05 per cent in May. Similarly, the May core inflation came in lower at 1.2 per cent as against 1.9 per cent on the MoM basis.
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Inflation in food articles basket was 6.99 per cent, down from 7.37 per cent in April. Inflation in ‘fuel and power’ category eased to 0.98 per cent, from 3.84 per cent last month. Manufactured items too saw fall in prices with inflation at 1.28 per cent in May, against 1.72 per cent in April.
The RBI in its June monetary policy cut the interest rates for third time in a row this year so as to fuel liquidity in the system.