India’s Wholesale Price Index (WPI) based inflation accelerated to 9.68 per cent year-on-year in May under the newly released WPI series, compared with 8.26 per cent in April under the old series. The release marks the first major revision of India’s wholesale inflation series in over a decade, with the base year updated from 2012 to 2023. Data released by the Ministry of Commerce and Industry showed that the rise in inflation last month was primarily driven by higher prices of mineral oils, crude petroleum and natural gas, manufacture of chemicals and chemical products, and manufacture of basic metals. The sharp rise in WPI inflation reflects the continued impact of elevated global crude oil prices amid persistent geopolitical tensions in West Asia, increasing the risk of imported inflation spreading further through domestic supply chains.
Among the major categories, the annual inflation rate in the fuel and power segment soared to 30.33 per cent in May, sharply up from 24.89 per cent in April. Inflation in primary articles also rose significantly to 5 per cent, from 3.78 per cent. Manufactured products, which carry the highest weight in the WPI basket, recorded an inflation rate of 7.48 per cent, compared with 6.68 per cent. Meanwhile, the WPI Food Index, comprising food articles and food products, edged up to 4.49 per cent from 3.11 per cent, during the same period.
