WPI inflation hits document excessive of 12.94 per cent in May on costlier gasoline

The wholesale price-based inflation accelerated to a document excessive of 12.94 per cent in May, on rising costs of crude oil and manufactured items.
Low base impact additionally contributed to the spike in WPI inflation in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent.
This is the fifth straight month of uptick seen within the wholesale value index (WPI)-based inflation. In April, 2021, WPI inflation hit double digit at 10.49 per cent.
“The annual charge of inflation, primarily based on month-to-month WPI, was 12.94 per cent for the month of May, 2021 (over May, 2020) as in comparison with (-) 3.37 per cent in May 2020.

“The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry stated.
Inflation in gasoline and energy basket spiked to 37.61 per cent throughout May, in opposition to 20.94 per cent in April. In manufactured merchandise, inflation stood at 10.83 per cent in May, in opposition to 9.01 per cent within the earlier month.
However, inflation in meals articles eased marginally to 4.31 per cent in May, whilst onion costs spiked. Inflation in onion stood at 23.24 per cent in May, in opposition to (-) 19.72 per cent in April.
The RBI in its financial coverage earlier this month saved rates of interest unchanged at document lows and dedicated to take care of an accommodative coverage stance to help development.

RBI pegged retail inflation at 5.1 per cent on this fiscal ending March 2022, with upside dangers from increased commodity costs and re-emergence of upper provide constraints amidst the present section of lockdowns.
Retail inflation information for May is scheduled to be launched later within the day.