The wholesale price index (WPI) based inflation in May hit an all-time high of 12.94 per cent owing to rising crude oil prices and those of manufactured products. Overall it was the fifth consecutive month when WPI breached the higher levels.
Earlier it was at 10.49 per cent level in April, which was a 11-year high.
Apart from rise in crude oil prices and higher costs of manufactured products, low base effect also led to WPI inflation going through the roof in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent.
“The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils i.e. petrol, diesel, naphtha and furnace oil among other things as well as manufactured products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said.
The manufactured products inflation rose to 10.8 per cent in May 2021 as compared to 9 per cent in the previous month, while core inflation spiked to 10 per cent compared to 8.3 per cent in April 2021.
Fuel and power inflation also went up by 37.6 per cent during May, against 20.94 per cent in April.
At the same time though, food prices showed a slight fall and were at 4.31 per cent in May 2021. Onion prices however witnessed a jump and were at 23.24 per cent in May. They were in the negative territory in April 2021 at (-) 19.72 per cent.