WPI inflation spikes to 14-month high of 4.43% in May on costlier fuel
Inflation based on wholesale prices shot up to a 14-month high of 4 points 43 per cent in May on increasing prices of petrol and diesel, prompting industry to demand action from policymakers to keep fuel prices under check.
The Wholesale Price Index (WPI) based inflation stood at 3.18 per cent in April and 2.26 per cent in May last year. According to government data released today, inflation in food articles was at 1.60 per cent in May 2018, as against 0.87 per cent in the preceding month.
Inflation in ‘fuel and power’ basket rose sharply to 11.22 per cent in May from 7.85 per cent in April as prices of domestic fuel increased in line with rising global crude oil rates.
Inflation in vegetables climbed to 2.51 per cent in May, with potato inflation at a peak of 81.93 per cent. Price rise in fruits was in double digits at 15.40 per cent, while pulses saw a deflation of 21.13 per cent.
May inflation at 4.43 per cent was a 14-month peak.
The previous high was in March 2017, when the WPI inflation stood at 5.11 per cent. The WPI inflation for March has been revised upwards to 2.74 per cent from the provisional estimate of 2.47 per cent.