Wholesale inflation zooms to 12.94%

New Delhi, June 14

The wholesale price-based inflation accelerated to a record 12.94% in May, on account of rising prices of crude oil, manufactured goods and a low base of last year.

This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation.

“The annual rate of inflation, based on monthly WPI, was 12.94% for May, 2021 (over May, 2020) as compared to (-) 3.37% in May 2020.

Retail inflation at six-month high of 6.3%

• Retail inflation rose to 6.3% in May, breaching the RBI’s comfort level, on the back of costlier food items, government data showed on Monday
• Inflation in the food basket was 5.01% in May, significantly up from 1.96% in April

“The high inflation in May is due to low base effect and rise in prices of crude oil, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said. — PTI