Rising food prices takes wholesale price inflation rises to 19-month high


The wholesale price-based inflation spiked to new high at 0.79 percent in May with prices of vegetable experiencing a double-digit growth.

This came a day after it was reported that the retail inflation had shot up to 5.76% in May due to rise in prices of food items, including vegetables.

In April, the WPI-based inflation was at 0.34 percent, while it was (-)0.45 percent in March.

Quoting adata from Indian government, PTI reported that the food inflation had risen to 7.88 percent in May as against 4.23 per cent in April.


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

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

Manufactured products inflation too inched up to 0.91 per cent from 0.71 per cent 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 per cent 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 per cent, though with an upward bias on account of firming of oil prices and implementation of 7th Pay Commission recommendations.


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