WPI or wholesale price index that measures inflation rate at the wholesale level has surged to a 14-month of 4.43% in May as against 3.18% in the previous month. In comparison, the WPI for the corresponding period last year stood at 2.26%.
The heightened growth in the wholesale inflation rate has come on the back of some of the food articles primarily vegetables and fuel prices.
WPI index reflects average price changes of goods that are bought and sold in the wholesale market. WPI in India is published by the Office of Economic Adviser, Ministry of Commerce and Industry.
Primary articles that account for more than 20% of the total index registered a growth of 3.16% in May in comparison to just 1.41% growth in April month. The prices of vegetables increased at the rate of 2.51% in May as against a decline of 0.89% in April.
On the other hand, the prices of pulses continued to decline for more than year now, with a fall registered at a relatively slower pace at (-) 21.13% in May in comparison to (-)22.46 percent in April.
The other major component of the WPI index i.e. fuel and power inflation which constitutes nearly 13% of the WPI index, also recorded an increase @ 11.22% in comparison to its growth of just 7.85% in the April month.