May wholesale inflation spikes to record high of 12.94 pc

New Delhi: Inflation based on Wholesale Price Index spiked to a record high of 12.94 per cent in May on low base effect and higher crude and manufactured goods prices.

In May, the WPI was minus 3.37 per cent. "The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc and manufactured products as compared the corresponding month of the previous year,'' the government said.

Inflation in fuel and power surged to 37.61 per cent during May, against 20.94 per cent in April.

In manufactured products, inflation stood at 10.83 per cent in May, against 9.01 per cent in the previous month.

Inflation in food articles however, eased marginally to 4.31 per cent in May, even as onion prices went up. Inflation in onion stood at 23.24 per cent in May, against (-) 19.72 per cent in April.

Data released also during the day showed retail inflation rose to 6.3 per cent in May on costlier food items.

The Consumer Price Index (CPI) based inflation stood at 4.23 per cent in April.

National Statistical Office data showed inflation in the food basket was 5.01 per cent in May, up significantly from 1.96 per cent in the preceding month.

The rise breaches the upper band of inflation target of the Reserve Bank which has been tasked to keep the retail inflation at 4 per cent with a margin of 2 per cent on either side.

The RBI, which mainly factors in retail inflation while arriving at its monetary policy, had left the key interest rate unchanged earlier this month. (UNI)