WPI Inflation Hits Three-Year Low Of -3.48% In May

The wholesale price index (WPI) fell to a three-year low of -3.48 percent year on year in May, according to official statistics released on Wednesday. In April, WPI inflation was - 0.92 percent.

"Decline in the rate of inflation in May, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas, and chemical & chemical products," a press release stated.

The month over month change in WPI in May 2023 was (-) 0.86% when compared to April 2023.

The Food Index, which consists of 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products group, has declined from 173.6 in April 2023 to 172.8 in May 2023. The WPI Food Index inflation rate declined from 0.17% in April 2023 to (-) 1.59% in May 2023.

Fuel and power inflation fell by 9.17 percent in May. Meanwhile, inflation in manufactured goods, which accounts for a large portion of the WPI, fell 2.97% in May after falling 2.42 percent in April.

Retail inflation in India fell further in May to a two-year low of 4.25 percent, down from 4.7 percent the previous month. Because of the decrease in food and gasoline costs, the number remained within the Reserve Bank of India's (RBI) tolerance limit of 2-6 percent.