.jpg)
.jpg)
.jpg)
Wholesale inflation gave a shock, but good news came on the GDP front
WPI i.e. Wholesale Price Index increased for the third consecutive month. WPI stood at 2.61 percent in May, which was 1.26 percent in April. This is the highest level of wholesale inflation seen in India since February 2023. However, in the meantime, good news has come on the GDP front. CII says that India's GDP growth may be 8 percent this financial year.
Wholesale price inflation (WPI) has increased for the third consecutive month. According to the data released on Friday, WPI stood at 2.61 percent in May, which was 1.26 percent in April. This is the highest level of wholesale inflation seen in India since February 2023.
The rise in wholesale price inflation in May was mostly caused by increases in the prices of crude oil, natural gas, mineral oil, food goods, and so on. Food prices grew by 9.8 percent in May, compared to 7.74 percent in April. The most significant increase was in vegetable prices. Prices for vegetables rose by 23.60 percent in April. In May, it jumped by 32.42 percent.
WPI has been growing for three months in a row. Meanwhile, retail inflation has reached a 12-month low of 4.75 percent. Retail inflation is often more important because the RBI considers it when determining monetary policy.
