New Delhi, June 14: The annual rate of inflation based on monthly wholesale price index (WPI) hit a high of 12.94 per cent in May as compared to negative 3.37 per cent in the same month of previous year, data released by the government on Monday showed. It was 10.49 per cent in April. The low base in May 2020 was due to implementation of a stringent nationwide lockdown.
"The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz petrol, diesel, naphtha, furnace oil etc and manufactured products," said a statement issued by the Ministry of Commerce and Industry. WPI Inflation Hits Double Digits in April at 10.49%; Crude Prices Harden.
Food prices rose to 4.31 per cent in May while fuel and power inflation stood at 37.61 per cent due to higher petrol and diesel prices. A global recovery has pushed up crude oil and prices of other commodities.
The price rise in manufacturing products was 10.83 per cent due to effects of supply-side bottlenecks stemming from local Covid-19 lockdowns. The increase in prices are primarily contributed by manufacture of basic metals, food products, fabricated metals, chemical & chemical products, and electrical equipment.
Four groups that witnessed decrease in prices are manufacture of other non-metallic mineral products; wood and of products of wood and cork; textiles; tobacco products while the manufacture of rubber and plastics products remain unchanged.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)