Wholesale price inflation shot up to 9.68 per cent in May, from 8.26 per cent in April, led by a sharp spike in prices of fuel and power, manufactured and food items.
The Commerce and Industry Ministry on Monday released the Wholesale price index (WPI)-based inflation data revising the base year to 2022-23, from 2011-12 earlier.
Wholesale price index (WPI)-based inflation in fuel and power jumped to 30.33 per cent in May as against 24.89 per cent in April. In crude petroleum, inflation was 61.51 per cent in May, as against 56.31 per cent in the previous month.
Fuel and power remained the largest contributor to wholesale inflation during the month. Within the category, inflation in crude petroleum and natural gas accelerated to 61.51 per cent, while mineral oils recorded inflation of 49.82 per cent.
The government said mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals were among the major drivers of wholesale inflation in May. The increase in energy costs raised input prices across sectors, contributing to broader producer price pressures.
Food inflation, measured by the WPI Food Index, rose to 4.49 per cent in May from 3.11 per cent in April. Inflation in primary articles increased to 4.99 per cent from 3.78 per cent a month earlier, reflecting higher prices across agricultural commodities.
Manufacturing inflation also gathered pace, rising to 7.48 per cent in May from 6.68 per cent in April.
The May data marks the first release under the revised WPI series with a new base year of 2022-23, replacing the 2011-12 series. The government has also introduced new Producer Price Indices (PPIs), including Output PPI, Trial Input PPI and Service PPI for seven services sectors.
The updated WPI basket has been expanded to 957 items from 697 previously and now includes renewable energy sources such as solar and wind power, along with nuclear electricity. Crude petroleum and natural gas have been moved from the primary articles category to fuel and power to better reflect energy price movements.
The Department for Promotion of Industry and Internal Trade (DPIIT) said that the WPI would continue to be published alongside PPIs for five years before being phased out, in line with global practices and recommendations of the International Monetary Fund.
