India's Wholesale Inflation Spikes To 15-Month High Of 2.61% In May 2024

Onion prices played a spoilsport, rising by 58 percent in May, data showed.

New Delhi: India's Wholesale Price Index (WPI) surged to 15-month high of 2.61 percent in May backed by increase in food articles prices, corresponding to the same period last year, data released by the Commerce Ministry on Friday showed.   

"The annual rate of inflation based on all India Wholesale Price Index (WPI) number is2.61% (Provisional) for the month of May, 2024(over May, 2023). Positive rate of inflation in May, 2024 is primarily due toincreasein prices offood articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc," said an official release.

Food articles which rose by 7.4 percent. Crude petroleum and natural gas turned costlier by 1.35 per cent during the month and prices of manufactured products were up marginally by 0.78 per cent.

The wholesale prices of onions shot up by 58 percent in May, data showed.

WPI inflation for the month of March was 0.26 percent in March and 1.26 percent in April.

"Going ahead, inflation in the food articles is expected to rationalize by September/October 2024 as many of the kharif crops will be entering the mandis and supplementing the existing supply on the back of government strengthening the supply chains and expectation of above normal southwest monsoon," said  Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry.