India’s WPI inflation in May declined to 3.48 percent

According to the Ministry of Commerce & Industry, it was stated on Wednesday that India’s wholesale inflation in May fell to (-) 3.48% YoY from (-) 0.92% in April. The decline in the inflation rate in May 2023 is primarily contributed by a fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas, and chemical & chemical products.

The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products group has decreased from 173.6 in April 2023 to 172.8 in May 2023. The rate of inflation based on the WPI Food Index decreased from 0.17% in April 2023 to (-) 1.59% in May 2023, the Ministry said.

Primary Articles (Weight 22.62%) - The index for this major group declined by 1.13% to 175.3 (provisional) in May 2023 from 177.3 (provisional) for the month of April 2023. Prices of Minerals (0.90%) increased in May 2023 as compared to April 2023. Prices of Food Articles (-0.22%), Non-food Articles (-1.87%), and Crude Petroleum & Natural Gas (-7.81%) declined in May 2023 as compared to April 2023.

Fuel & Power (Weight 13.15%) - The index for this major group declined by 2.62% to 148.6 (provisional) in May 2023 from 152.6 (provisional) in April 2023. Prices of Coal (-0.67%), Mineral Oils (-2.01%), and Electricity (-5.46%) declined in May 2023 as compared to April 2023.

Manufactured Products (Weight 64.23%) - The index for this major group has declined by 0.35% to 140.7 (provisional) in May 2023 from 141.2 (provisional) for the month of April 2023. Out of the 22 NIC two-digit groups for Manufactured products, 7 groups have witnessed an increase in prices, whereas 11 groups have witnessed a decrease in prices. The groups that have recorded major increases in prices are electrical equipment; pharmaceuticals, medicinal, chemical, and botanical products; tobacco products; wood and products of wood & cork; leather and related products; beverages, etc. Some of the groups that have witnessed a decrease in prices are basic metals; food products; textiles; chemical and chemical products, other manufacturing, etc. in May 2023 as compared to April 2023.

Source: Media reports