The annual rate of inflation based on the All India Wholesale Price Index (WPI) rose to 2.61% in May 2024, marking an increase compared to the same period last year. This upward trend was primarily due to higher prices observed across various sectors including food articles, manufactured food products, crude petroleum & natural gas, mineral oils, and other manufacturing categories.
Month-over-Month Change in Major Groups of WPI:
1. Primary Articles:
The index for primary articles, constituting 22.62% of the WPI, saw a modest increase of 0.54% in May 2024, reaching 187.7 from 186.7 in April 2024. This increase was driven by higher prices in food articles (1.48%) and minerals (1.08%), despite declines in non-food articles (-1.26%) and crude petroleum & natural gas (-3.56%).
2. Fuel & Power:
The fuel & power group, with a weight of 13.15% in WPI, experienced a notable decline of 2.71% in May 2024, dropping to 150.6 from 154.8 in April 2024. This decrease was mainly influenced by lower electricity prices (-11.67%), while prices of mineral oils and coal remained unchanged.
3. Manufactured Products:
Comprising the largest share at 64.23% of WPI, manufactured products saw a slight increase of 0.64% in May 2024, rising to 141.7 from 140.8 in April 2024. Among the various sub-groups, 13 reported price increases, notably in basic metals, food products, computer and electronic products, and electrical equipment. Conversely, eight groups recorded price declines, including fabricated metal products, chemicals, tobacco products, and other transport equipment.
The WPI Food Index, accounting for 24.38% of WPI, increased from 183.6 in April 2024 to 185.7 in May 2024. This increase pushed the inflation rate based on the WPI Food Index from 5.52% in April 2024 to 7.40% in May 2024, reflecting high inflationary pressures within the food sector.
This data underscores the challenges posed by rising food prices and manufacturing costs, contributing to the overall inflationary environment as reflected in the latest WPI figures for May 2024.
