WPI inflation surges up 0.79% in May, food inflation rises up 7.88%
June 15, 2016
The Wholesale Price Index (WPI) surged up in May by 0.79 per cent as compared to the 0.34 per cent in April, when it was the first monthly rise after 17 months of contraction. According to the official data issued, the rise in the WPI is primarily because of the rise in food inflation, which went up 7.88 per cent as compared to 4.23 per cent in April. Prices of manufactured products also rose for a third month by 0.91 per cent in May.
Consumer Price Index (CPI), climbed up 5.39 per cent in April after touching six month low of 4.83 per cent in March. Retail inflation in May has surged up to its 19 months high to 5.76 per cent. With this rise in both the wholesale and retail inflation, interest rate cut despite may get delayed by the RBI. This can have further impact on the macro indicators in the economy.