India's wholesale price inflation zooms to 12.94% in May

India’s wholesale price inflation, based on the Wholesale Price Index (WPI) spurted to 12.94 per cent in May 2021, compared to -3.37 per cent growth in May 2020, provisional figures released by the commerce ministry showed.

The high rate of inflation in May 2021 has been attributed primarily to low base effect and rise in prices of crude petroleum, mineral oils, viz, petrol, diesel, naphtha, furnace oil etc and manufactured products as compared to the corresponding month of the previous year. 
Inflation rate for the `primary articles’ group, which has a weight of 22.62 per cent in the wholesale price ndex (WPI) declined by 0.86 per cent in May 2021, provisional figures released today showed.
Prices of non-food articles increased in May 2021 (as compared to April 2021) by 1.26 per cent, with prices of crude petroleum and natural gas rising by 0.67 pr cent and prices of food articles declining by 1.48 per cent.
Inflation rate for the fuel and power (weight of 13.15 per cent in WPI) increased by 1.75 per cent in May 2021 as prices of mineral oils increased by 3.12 in May from the previous month.
Inflation rate for the `manufactured products group (weight of 64.23 per cent in WPI) increased by 1.24 per cent in May 2021. Out of the 22 groups of manufactured products, 17 groups witnessed increase in prices and 4 groups witnessed decrease in May 2021 as compared to April 2021 while the prices of one group remained unchanged. 
The increase in prices are primarily contributed by the manufacture of basic metals, food products, fabricated metals, chemical & chemical products, and electrical equipment. Four groups that have witnessed decrease in prices are manufacture of other non- metallic mineral products; wood and of products of wood and cork; textiles; tobacco products , while the manufacture of rubber and plastics products remain unchanged in May, 2021 as compared to April, 2021.
WPI Food Index (Weight 24.38%) The WPI Food Index consisting of 'food articles' from primary articles group and 'food product' from the manufactured products group declined by 0.19 per cent in May 2021.