Inflation: India’s WPI declines to a 3-year low of (-) 3.48% in May 2023

Virendra Pandit

New Delhi: As Pakistan battles against a record 38 percent inflation, and so do many other countries, India’s Wholesale Price Index (PI) declined to a three-year low of minus 3.48 percent in May 2023, on easing prices of food, fuel, and manufactured items.

The WPI-based inflation rate remained in negative territory for the second straight month. In April, it was (-) 0.92 percent.

In May 2022, the WPI inflation rate was at 16.63 percent.

The May 2023 data print of (-) 3.48 percent is the lowest WPI print recorded since May 2020, when wholesale inflation was at (-) 3.37 percent.

Inflation in food articles eased to 1.51 percent in May, against 3.54 percent in April.

“Decline in the rate of inflation in May 2023 is primarily contributed by fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum & natural gas, and chemical & chemical products,” the Union Ministry of Commerce and Industry said on Wednesday.

Fuel and power basket inflation eased to (-) 9.17 percent in May, from 0.93 percent in April.

In manufactured products, the inflation rate was (-) 2.97 percent in the month under review, as against (-) 2.42 percent in April.

The deceleration in WPI comes in line with the easing of May retail inflation, which came in at a 25-month low of 4.25 percent.