New Delhi: Inflationary pressures continue to grip India's economy as the Wholesale Price Index (WPI) inflation surged for the third consecutive month to 2.61 percent in May 2024, marking a significant rise from 1.26 percent in April. The latest data released by the Ministry of Commerce and Industry highlights a notable uptick in prices across various sectors, attributing the increase primarily to soaring food prices, manufacture of food products, crude petroleum and natural gas, mineral oils, and other manufacturing segments.
A closer examination of the WPI Food Index reveals a substantial jump from 5.52 percent in April to 7.40 percent in May, fuelled by sharp increases in vegetable prices, which soared by 32.42 percent. Notably, onion and potato prices witnessed staggering hikes of 58.05 percent and 64.05 percent, respectively, while pulses registered a significant increase of 21.95 percent.
In contrast, inflation in the fuel and power basket remained relatively stable at 1.35 percent, marginally lower than April's 1.38 percent. Meanwhile, manufactured products experienced a moderate inflation rate of 0.78 percent.
Despite the concerning inflationary trends in wholesale prices, there's a glimmer of relief in retail inflation, which dipped to a one-year low of 4.75 percent in May, indicating a slight alleviation for consumers.
The Reserve Bank of India (RBI) opted to maintain the interest rate unchanged for the eighth consecutive time earlier this month, signalling a cautious stance towards managing inflation while considering broader economic factors. This decision underscores the RBI's commitment to fostering economic growth while simultaneously addressing inflationary pressures.
source- mint, the new indian express.
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