Due to rising crude oil and manufactured product prices, inflation based on the wholesale price index (WPI) reached an all-time high of 12.94% in May. Overall, WPI surpassed the higher standards for the fifth month in a row.
It had previously reached an 11-year high of 10.49% in April.
In May 2021, manufactured product inflation increased to 10.8% from 9% the previous month, while core inflation increased to 10% from 8.3% in April 2021. In May, fuel and electricity inflation increased by 37.6%, compared to 20.94% in April. Food costs, on the other hand, fell little and were at 4.31% in May 2021. Onion prices, on the other hand, increased by 23.24% in May. At (−) 19.72 % in April 2021, they were in the negative area.
“The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils i.e. petrol, diesel, naphtha and furnace oil among other things as well as manufactured products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said.