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India's Wholesale Price Index (WPI)-based inflation surged to 2.61 per cent in May 2024, marking the highest rate in 15 months since February 2023, when it stood at 3.85 per cent, before dropping to 1.41 per cent in March 2023.
Last month, India's WPI-based inflation hit a 13-month high, reaching 1.26 per cent year-on-year, according to the data released by the Ministry of Commerce and Industry on Friday.
The recent spike in WPI-based inflation is attributed to rising prices in key sectors such as food articles, the manufacture of food products, crude petroleum and natural gas, mineral oils, and manufacturing sectors.
In May of last year, the WPI had substantially declined to -3.48 per cent.
May WPI: Primary articles
The index for primary articles rose by 0.54 per cent to 187.7 in May 2024, up from 186.7 in April 2024.
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Prices of food articles increased by 1.48 per cent and minerals by 1.08 per cent.
Prices of non-food articles declined by 1.26 per cent, and crude petroleum & natural gas fell by 3.56 per cent.
May WPI: Fuel and power
Prices in the fuel and power sector rose by 1.35 per cent, slightly down from the 1.38 per cent rise seen in April.
Prices of mineral oils and coal remained unchanged, while electricity prices saw a significant decline of 11.67 per cent.
May WPI: Manufacturing
WPI of manufactured goods increased to 0.78 per cent, reversing a 0.42 per cent decline in April.
Out of the 22 National Industrial Classification (NIC) two-digit groups for manufactured products, 13 groups experienced price increases, eight groups saw price decreases, and one group remained constant.
Notable increases were seen in basic metals, food products, computers, electronic & optical products, electrical equipment, and other manufacturing.
Decreases were observed in fabricated metal products (except machinery & equipment), other non-metallic mineral products, chemicals & chemical products, tobacco products, and other transport equipment.
May WPI: Food index
Food prices surged by 7.4 per cent in May compared to a 5.52 per cent increase in April. Vegetable prices saw a particularly sharp rise, up 32.42 per cent year-on-year, compared to a 27.94 per cent increase in the previous month.
The Food Index, which includes 'food articles' from the primary articles group and 'food products' from the manufactured products group, increased from 183.6 in April 2024 to 185.7 in May 2024.
