Wholesale Price-Based Inflation Reaches 3-Year Low at -3.48% in May

New Delhi: The wholesale price-based inflation rate declined by (-) 3.48%, reaching a three-year low in May. This decrease can be attributed to lower prices of food, fuel, and manufactured items. It marks the second consecutive month of negative inflation, following (-) 0.92% in April. Compared to May 2022, when WPI inflation stood at 16.63%, the current figure is significantly lower. In fact, it is the lowest WPI recorded since May 2020 when wholesale inflation was (-) 3.37%.

The decline in May’s inflation rate is primarily driven by reduced prices in various sectors, including mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas, and chemical & chemical products, as stated by the commerce and industry ministry.

Specifically, inflation in food articles eased to 1.51% in May, down from 3.54% in April. The fuel and power basket inflation also decreased to (-) 9.17% in May, compared to 0.93% in April. In the category of manufactured products, the inflation rate was (-) 2.97% in May, slightly higher than (-) 2.42% in April.

This decline in the wholesale price index aligns with the easing of retail inflation in May, which reached a 25-month low of 4.25%.