The Wholesale Price Index for inflation rose to 0.79% for the month of May 2016, as against 0.35 per cent for the previous month.

"The annual rate of inflation, based on monthly WPI, stood at 0.79% (provisional) for the month of May, 2016 (over May, 2015) as compared to 0.34% (provisional) for the previous month and -2.20% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.34% compared to a build up rate of 1.08% in the corresponding period of the previous year," a government release has stated.

Food articles inflation was a major culprit, jumping 7.88 per cent vs 4.23 per cent, month on month.

In fact, the entire primary articles inflation jumped to 4.55 per cent in the month of May from 2.34 per cent in the month of April.

Manufactured products inflation jumped very marginally from 0.71 per cent to 0.91 per cent.
After being in the negative territory for many months now, WPI Inflation is showing some signs of an uptick.

However, the Reserve Bank of India often does not consider WPI Inflation for the purpose of policy decisions.

In fact, it takes into account CPI Inflation for the purpose of policy decisions.

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