The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.61% (Provisional) for the month of May, 2024(over May, 2023). Positive rate of inflation in May, 2024 is primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc.
Thus, it remained in positive territory for the seventh month after remaining in the negative zone for seven months until October. The high rate of wholesale inflation in April was primarily due to an increase in prices of food articles and minerals. In the food basket, cereals, paddy, pulses, vegetables, potato, onion, fruits, all spiked. Also, high in May was was triggered due to an increase in prices of manufacture of food products, crude petroleum and natural gas, mineral oils, and other manufacturing. Economists often say a little rise in wholesale inflation is good as it typically incentivizes goods manufacturers to produce more.
