Wholesale Price Index fell low to 2.17%, vegetable prices down 18.51%

- Aditya Sharma   15-06-2017

          


The Wholesale Price Index on which the inflation is based falls to a five –month low of 2.17% in May, mainly because of sharp drop of prices of vegetables.

The WPI inflation was 3.85% in April and (- 0.9)% in May 2016.

Pulses and Cereals saw a slower growth in prices.

The WPI of the month is based on the new base year of 2011-12, which was revised last month from 2001-05, aiming to reflect the macroeconomic picture more accurately.

The slowdown in the Inflation of Wholesale comes against the backdrop of retail inflation easing to a multi-year low of 2.18% in May.

The data from the Government showed that the prices of food articles shrank by 2.27% in  may, it is on an yearly basis.

 

The Inflation chart for vegetable showed (-18.51)%, while potato saw a deflation of 44.36% in cereals, down from 6.67% in May last year.

Pulses turned cheaper in May as prices fell by 19.73%.

Eggs, meat, fish and others saw a price decline of 1.02% annually.

“The Index of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products,” from the sources.

Acceleration in prices of fuel and power was at 11.69% and manufactured products were at 2.55%.

Sugar’s price rises, however, falls under the category of manufactured items, slowed to 12.38% in May, from 23.12% an year before.