WPI inflation at 0.79% in May, vegetable prices soar | business | Hindustan Times
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WPI inflation at 0.79% in May, vegetable prices soar

business Updated: Jun 14, 2016 16:18 IST
PTI
PTI
inflation

Inflation in vegetables came in at 12.94%, a sharp rise from 2.21%, a month earlier. (Arun Mondhe/HT file)

Rising for the second straight month, wholesale price-based inflation jumped to 0.79% in May with vegetable prices witnessing a double-digit growth.

The April WPI-based inflation was at 0.34% and in March it was (-)0.45% while it stood at (-)2.20% in May last year.

Food inflation rose to 7.88% in May as against 4.23 per cent in April, showed a government data on Tuesday.

Inflation in vegetables came in at 12.94%, a sharp rise from 2.21%, a month earlier. Pulses inflation remained stubborn at 35.56%.

Prices of egg, meat and fish paced up by 9.75% and in fruits the rise was 3.80%. However, kitchen staple onion continued to witness decline at (-)21.70% in May.

Manufactured products inflation too inched up to 0.91% from 0.71% in April.

The hardening of WPI food inflation follows the trend of retail inflation released on Monday.

Retail inflation touched a 21-month high of 5.76% in May mainly due to rising prices of food items.

The hardening of inflation could further dent the chances of a interest rate cut by Reserve Bank in its policy review in the months ahead.

In its policy review earlier this month, RBI had retained January 2017 retail inflation target at 5%, though with an upward bias on account of firming of oil prices and implementation of 7th Pay Commission recommendations.