India’s wholesale price inflation shrinks 3.48% in May
![India’s wholesale price inflation shrinks 3.48% in May](https://campaign24.in/wp-content/uploads/2023/06/download-61.jpg)
The wholesale price index (WPI) fell 3.48%, compared with a 2.35% fall estimated by economists in a Reuters poll. It fell 0.92% in April.
In Short
- Wholesale prices fall for 2nd month in a row
- Food, fuel and manufactured goods prices down
- Inflationary pressure conitnues to decline in India
By Reuters: India’s annual wholesale prices fell for the second consecutive month in May on easing input costs brought about by lower commodity prices, government data showed on Wednesday.
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The wholesale price index (WPI) fell 3.48%, compared with a 2.35% fall estimated by economists in a Reuters poll. It fell 0.92% in April.
“The data does not come as a surprise as commodity prices have globally corrected and they have high weightage in WPI,” said economist DK Joshi at CRISIL.
The food index fell 1.59% year-on-year against a rise of 0.17% in April, while fuel and power fell 9.17% compared with rise of 0.93% in the previous month.
Manufactured product prices fell 2.97% in May, the data showed.
Inflation pressure in the South Asian country have shown signs of easing in the past few months.
This week, annual retail inflation rate cooled to a more than two-year low of 4.25% in May as cost pressure on food eased, moving closer to the Reserve Bank of India’s 4% target.
“WPI will continue to remain negative for next quarter until base effect fades,” Joshi said.
Earlier this month, the central bank kept its key lending rate steady for a second consecutive policy meeting, but signalled that monetary conditions will remain tight for some time as it looks to further curb inflationary pressure.