Food prices pushes WPI Inflation to 0.79% in May; reduces hopes of rate cut

Zee Media Bureau

New Delhi: Wholesale inflation rose to 0.79 percent in May compared with 0.34 percent in April, government data showed on Tuesday.

Food inflation rose to 7.88 per cent in May as against 4.23 percent in April.

Inflation in vegetables came in at 12.94 percent, a sharp rise from 2.21 percent, a month earlier. Pulses inflation remained stubborn at 35.56 percent.

Manufactured products inflation too inched up to 0.91 percent from 0.71 percent in April.

Yesterday, retail inflation rose to nearly two-year high of 5.76 percent in May mainly due to rising prices of food items, including vegetables, and may hold back the RBI from reducing rates in the near term.

The Consumer Price Index (CPI) based retail inflation, which measures the rate of price change annually, in April was at 5.47 percent. In May 2015, retail inflation stood at 5.01 percent.

In August 2014, consumer inflation was at 7.8 percent.

Among the items in the consumer basket, vegetables witnessed the sharpest price rise at 10.77 percent in May compared with 4.82 percent in April, showed the government data.

Protein rich items too turned dearer with inflation printing to 9.13 percent in eggs, meat and fish 8.67 percent, milk and products 3.53 percent and fruits 2.64 percent.

With PTI Inputs