New Delhi [India]: Wholesale inflation in India, based on the Wholesale Price Index, rose to 2.61 per cent in May from 1.26 per cent in April, according to official data from the Commerce Ministry.
Thus, after being in negative territory for seven months till October, it remained in positive territory for the seventh month.
The higher rate of wholesale inflation in April was mainly due to a rise in prices of food items and minerals. The food basket includes grains, paddy, pulses, vegetables, potatoes, onions, fruits, all spices.
Additionally, the increase in May was driven by increases in prices of food products, crude petroleum and natural gas, mineral oils and other manufacturing.Economists often say that a small increase in wholesale inflation is good because it generally encourages goods manufacturers to produce more.
In April last year, the wholesale inflation rate had gone into negative territory. Similarly, in July 2020, in the early days of COVID-19, the WPI was reported negative.
Overall wholesale inflation stood at 8.39 percent in October 2022 and has declined since then. Notably, Wholesale Price Index (WPI) based inflation had remained in double digits for 18 consecutive months till September 2022.
The government releases the Wholesale Prices Index on a monthly basis on the 14th of every month (or the next working day).The index numbers are compiled from institutional sources and data obtained from selected manufacturing units across the country.
Meanwhile, India's retail inflation rate eased marginally in May, continuing the downward trend, although food prices remain a concern for policymakers.
Annual retail inflation stood at a 12-month low of 4.75 per cent in May, marginally lower than 4.83 per cent in April. Retail inflation or consumer price index stood at 5.7 percent in December last year and has been moderating since then.
Retail inflation in India, although at the RBI's comfort level of 2-6 per cent, is above the ideal 4 per cent scenario, and food inflation is of particular concern.Barring recent hiccups, the RBI has raised the repo rate by a cumulative 250 basis points to 6.5 per cent from May 2022 in the fight against inflation.
Raising interest rates is a monetary policy tool that generally helps to suppress demand in the economy, thereby helping to decline the inflation rate.
According to the minutes of the latest monetary policy meeting released recently, there have been several mentions of uncertainties around inflation.
According to details, going forward, food price uncertainties will continue to weigh on the inflation outlook. According to the latest RBI monetary policy minutes, pressure in food prices is disrupting the ongoing disinflation process in India, and creating challenges to ultimately bring the inflation trajectory back to the 4 per cent target.
Thus, after being in negative territory for seven months till October, it remained in positive territory for the seventh month.
The higher rate of wholesale inflation in April was mainly due to a rise in prices of food items and minerals. The food basket includes grains, paddy, pulses, vegetables, potatoes, onions, fruits, all spices.
Additionally, the increase in May was driven by increases in prices of food products, crude petroleum and natural gas, mineral oils and other manufacturing.Economists often say that a small increase in wholesale inflation is good because it generally encourages goods manufacturers to produce more.
In April last year, the wholesale inflation rate had gone into negative territory. Similarly, in July 2020, in the early days of COVID-19, the WPI was reported negative.
Overall wholesale inflation stood at 8.39 percent in October 2022 and has declined since then. Notably, Wholesale Price Index (WPI) based inflation had remained in double digits for 18 consecutive months till September 2022.
The government releases the Wholesale Prices Index on a monthly basis on the 14th of every month (or the next working day).The index numbers are compiled from institutional sources and data obtained from selected manufacturing units across the country.
Meanwhile, India's retail inflation rate eased marginally in May, continuing the downward trend, although food prices remain a concern for policymakers.
Annual retail inflation stood at a 12-month low of 4.75 per cent in May, marginally lower than 4.83 per cent in April. Retail inflation or consumer price index stood at 5.7 percent in December last year and has been moderating since then.
Retail inflation in India, although at the RBI's comfort level of 2-6 per cent, is above the ideal 4 per cent scenario, and food inflation is of particular concern.Barring recent hiccups, the RBI has raised the repo rate by a cumulative 250 basis points to 6.5 per cent from May 2022 in the fight against inflation.
Raising interest rates is a monetary policy tool that generally helps to suppress demand in the economy, thereby helping to decline the inflation rate.
According to the minutes of the latest monetary policy meeting released recently, there have been several mentions of uncertainties around inflation.
According to details, going forward, food price uncertainties will continue to weigh on the inflation outlook. According to the latest RBI monetary policy minutes, pressure in food prices is disrupting the ongoing disinflation process in India, and creating challenges to ultimately bring the inflation trajectory back to the 4 per cent target.
