Our Bureau
New Delhi
India’s wholesale price inflation accelerated sharply to 9.68% in May, up from 8.26% in April, driven by steep increases in fuel, food and manufactured goods prices. The latest data marks the highest wholesale inflation level under the revised Wholesale Price Index (WPI) series and signals mounting cost pressures across the economy.
According to government data, the fuel and power category recorded the sharpest increase, with inflation in the segment rising to 30.33% in May from 24.89% in April. Prices of crude petroleum and natural gas also remained elevated, reflecting the impact of higher global energy costs and geopolitical tensions affecting oil supplies.
Food inflation also gathered pace during the month. Inflation in food articles rose to 3.60 per cent from 2.43% in April, while inflation in manufactured products increased to 7.48 % from 6.68 %. Economists noted that higher fuel costs have gradually filtered through supply chains, raising production and transportation expenses for a wide range of goods.
The surge in wholesale prices is largely attributed to rising energy prices linked to disruptions in global oil markets. Analysts warn that sustained increases in input costs could place pressure on businesses and potentially influence consumer prices in the coming months.
Despite the spike in wholesale inflation, retail inflation has remained comparatively moderate, offering some relief to policymakers. However, experts believe continued volatility in fuel markets and supply chains will remain key risks to India’s inflation outlook. The latest figures underscore the challenges facing the economy as it navigates global uncertainties and rising commodity prices.
