In May, 2022 WPI inflation was 16.63% | representative image | Photo credit: Sushil Kumar Verma
The inflation rate based on wholesale prices fell to (-) 3.48% in May, a 3-year low, due to lower prices for food, fuel and manufactured items.
The inflation rate based on the wholesale price index (WPI) was in negative territory for the second month in a row. In April, it was (-) 0.92%.
In May, the 2022 WPI inflation was 16.63%.
The May 2023 data print of (-) 3.48% is the weakest WPI print since May 2020, when wholesale inflation was (-) 3.37%.
Food inflation eased to 1.51 percent in May from 3.54 percent in April.
“The decrease in the inflation rate in May 2023 is mainly due to lower prices for mineral oils, base metals, food products, textiles, non-food items, crude oil and natural gas, and chemicals and chemical products,” Commerce said. and the Ministry of Industry announced on Wednesday.
Inflation for the fuel and electricity basket decreased to (-) 9.17% in May, from 0.93% in April.
In manufactured goods, the inflation rate stood at (-) 2.97% during the month under review, against (-) 2.42% in April.
The deceleration in the WPI is part of the slowdown in retail price inflation in May, which stood at a 25-month low of 4.25%.