Wholsesale price inflation declines to 3-year low in May as food, fuel prices ease

Wholesale price-based inflation reached a three-year low of (-) 3.48 per cent in May due to a decline in prices of food, fuel, and manufactured items.

The wholesale price index (WPI) has remained in negative territory for the second consecutive month, after recording (-) 0.92 per cent in April. In May 2022, WPI inflation stood at 16.63 per cent. The May 2023 data reflects the lowest WPI recorded since May 2020 when wholesale inflation was (-) 3.37 per cent.

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Inflation in food articles moderated to 1.51 per cent in May, down from 3.54 per cent in April.

According to the Ministry of Commerce and Industry, the decline in the inflation rate in May 2023 is primarily due to the decrease in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum and natural gas, and chemical and chemical products.

Fuel and power basket inflation declined to (-) 9.17 per cent in May, compared to 0.93 per cent in April. In the category of manufactured products, the inflation rate was (-) 2.97 per cent in the reviewed month, as opposed to (-) 2.42 per cent in April.

The slowdown in WPI aligns with the easing of retail inflation in May, which reached a 25-month low of 4.25 per cent.

With agency inputs