Riding on fuel, core inflation, WPI jumps to 14-month high in May

The impact of firming input prices also showed up in manufactured products' inflation, which was up 62 bps

Wholesale price index-based (WPI) inflation jumped to 4.4 per cent in May, from 3.2 per cent in April, the highest level in 14 months.

Fuel inflation was the main driver, jumping up over 330 basis points (bps) on-month, while core inflation crept up 30 bps and closed in on 2 per cent.

We measure core inflation using the CRISIL Core Inflation Indicator (CCII). It reduces volatility by excluding base metals from the manufacturing index, is, therefore, more stable and captures demand-side pressures on prices more accurately than other core inflation measures.

CCII-based inflation has been picking up for the last