Wholesale inflation rises to 14-month high of 4.43% in May on costlier fuel, veggies | business news | Hindustan Times
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Wholesale inflation rises to 14-month high of 4.43% in May on costlier fuel, veggies

The Wholesale Price Index (WPI) based inflation stood at 3.18% in April and 2.26% in May last year.

business Updated: Jun 14, 2018 13:27 IST
Press Trust of India
Press Trust of India
Press Trust of India, New Delhi
Inflation in vegetables climbed to 2.51% in May, while in the previous month it was (-)0.89%.
Inflation in vegetables climbed to 2.51% in May, while in the previous month it was (-)0.89%.(REUTERS File Photo)

Inflation based on wholesale prices shot up to a 14-month high of 4.43% in May on increasing prices of petrol and diesel, and vegetables.

The Wholesale Price Index (WPI) based inflation stood at 3.18% in April and 2.26% in May last year.

According to government data released on Thursday, inflation in food articles was at 1.60% in May 2018, against 0.87% in the preceding month.

Inflation in vegetables climbed to 2.51% in May, while in the previous month it was (-)0.89%. Inflation in ‘fuel and power’ basket rose sharply to 11.22% in May from 7.85% in April as prices of domestic fuel increased in line with rising global crude oil rates.

Potato inflation was at a peak of 81.93%, against 67.94% in April. Price rise in fruits was in double digits at 15.40%, while pulses saw a deflation of 21.13%.

The WPI inflation for March was revised upwards to 2.74% from the provisional estimate of 2.47%.

May inflation at 4.43% was a 14-month peak. The previous high was in March 2017, when the WPI inflation stood at 5.11%.

In its second monetary policy review for the fiscal, the Reserve Bank earlier this month hiked interest rate by 0.25% -- the first hike in more than four years -- due to growing concerns about inflation stoked by rising global crude oil prices as well as domestic price increases.

The price of Indian basket of crude surged from $66 a barrel in April to around $74 currently.

Data released earlier this week showed retail inflation jumped to a 4-month high of 4.87% in May on costlier food items such as fruits, vegetables and fuel. The RBI mainly takes into account retail inflation data while formulating monetary policy.