WPI inflation for May declines to 4.70%

Business

oi-Sunil

By Sunil Fernandes

Published: Friday, June 14, 2013, 12:10 [IST]

The Whole Sale Price Inflation for May 2013 has declined to 4.7%, which is lower then what analysts had forecast raising the prospects for a rate cut by RBI on June 17. The WPI reading for the month of April was 4.89 per cent.

Even core inflation for the Month of May has also declined sharply to 2.4 per cent.

"The index for ‘Food Articles' group rose by 1.5 percent to 223.1 (provisional) from 219.8 (provisional) for the previous month due to higher price of poultry chicken and ragi (5% each), fruits & vegetables (4%), fish-marine (3 %), rice (2%) and bajra, condiments & spices and milk (1% each). However, the price of tea (5%), coffee and maize (2% each) and wheat, barley, moong, jowar, gram and egg (1% each) declined," a government release has stated.

The index for fuel and power which has a weightage of almost 14 per cent in the index, declined by 1.3 percent for the previous month despite higher price of electricity.

The index for manufactured group rose by 0.3 percent to 149.1 (provisional) from 148.7 (provisional) for the previous month.

The annual rate of inflation based on final index for the Month of March was reduced to 5.65 percent as compared to 5.96 per cent.

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