Team News Riveting
New Delhi, June 14
The wholesale inflation in India hit a record high of 12.94 per cent in May from 10.49 per cent in April due to low base and a continued rise in fuel and commodity prices.
According to data released by the government, Wholesale inflation was recorded at (-) 3.37 per cent in May 2020, on account of implementation of a stringent nationwide lockdown.
Wholesale inflation rate, measured by wholesale price index (WPI), has been on a rise over the last six months. The latest inflation rate released by the government is the highest under the current series available from 2013.
According to data released by the Commerce and Industry Ministry on Monday, food prices rose to 4.31 per cent in May. Fuel and power inflation stood at 37.61 per cent led by higher petrol and diesel prices. The price rise in manufacturing products that accounts for close to two-third of the index, was 10.83 per cent.
Month over Month Change in Major Groups of WPI
- Primary Articles (Weight 22.62%):- The index for this major group declined by 0.86% to 150.5 (Provisional) in May, 2021 from 151.8 (Provisional) for the month of April, 2021. Prices of Non-food Articles increased in May, 2021 (as compared to April, 2021) by 1.26%, Crude Petroleum & Natural Gas by 0.67% and Food Articles declined by 1.48%.
- Fuel & Power (Weight 13.15%):- The index for this major group increased by 1.75% to 110.5 (Provisional) in May, 2021 from 108.6 (Provisional) for the month of April, 2021. Prices of Mineral Oils increased by 3.12% in May, 2021 as compared to April, 2021.
- Manufactured Products (Weight 64.23%): – The index for this major group increased by 1.24% to 131.0 (Provisional) in May, 2021. Out of the 22 NIC two-digit groups for Manufactured products, 17 groups have witnessed increase in prices, 4 groups have witnessed decrease in May 2021 as compared to April 2021 and for one group the prices 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 Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have decreased by 0.19% from 158.9 in April, 2021 to 158.6 in May, 2021.
Final index for March, 2021 (BASE YEAR: 2011-12=100)
For the month of March, 2021, the final WPI and inflation rate for All Commodities (Base: 2011-12=100) stood at 129.9 and 7.89% respectively. The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for May, 2021 are at Annex I. The Annual rate of Inflation (Y-o-Y) based on WPI for different commodity groups in the last six months is at Annex II. The WPI Index for different commodity groups in the last six months is at Annex III.
Response Rate
The WPI for May, 2021 have been compiled at a weighted response rate of 72 percent, while the final figure for March, 2021 is based on the weighted response rate of 91 percent. The Provisional figures of WPI will undergo revision as per the final revision policy of WPI.
