India’s wholesale inflation gauged by the Wholesale Price Index, with the base year as 2011-12, rose to a record high of 15.88 percent in May 2022 from 15.08 percent in April, official data revealed on Tuesday.
The wholesale inflation has been double-digit for over a year now.
The high rate of inflation in May is primarily due to the rise in prices of mineral oils, crude petroleum and natural gas, food articles, basic metals, non-food articles, chemicals, and chemical products, and food products as compared to the corresponding month of the previous year, an official statement said.
The rate of inflation based on the WPI Food Index increased from 8.88 percent in April 2022 to 10.89 percent in May, data showed.
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Provisional figures of the Wholesale Price Index (WPI) are released on the 14th of every month (or the next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country.
Besides, India’s retail inflation for the month of May moderated from the previous month and came in at 7.04 percent, however, it remained above the central bank RBI’s 6 percent upper tolerance band for the fifth month in a row.
Reserve Bank of India (RBI) Governor Shaktikanta Das, at the latest monetary policy committee review deliberations, categorically said that the country’s retail inflation is likely to stay above the tolerance level till the third quarter of FY23 before moderating below 6 percent.
Das also said that 75 percent of the increase in inflation projections can be attributed to the food group.
For FY23, the RBI sees overall inflation at 6.7 percent, with 7.5 percent in Q1, 7.4 percent in Q2, 6.2 percent in Q3, and 5.8 percent in Q4, taking into consideration the normal monsoon and average crude oil basket price of $105 per barrel.
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