WPI Inflation: The biggest blow to inflation since 2012, wholesale inflation reached 15.88 percent in May

At present, there is no relief from inflation. According to the data released by the government on Tuesday, the WPI inflation in May stood at 15.88 percent on a year-on-year basis. Wholesale inflation has reached this high for the first time since 2012. 

The rise in wholesale inflation was witnessed in May due to rise in prices of mineral oils, crude petroleum and natural gas, food articles, basic metals, non-food articles, chemicals and chemical products. Inflation in food articles rose to 10.89 per cent in May from 8.88 per cent in April. Inflation in vegetables, which was 23.24 per cent in April, rose to 56.36 per cent in May.

There was some moderation in the inflation rate of manufactured items. Where it was 10.85 percent in April, it came down to 10.11 percent in May. Talking about fuel and power, its prices saw a jump of 40.62 percent during May.

Retail inflation (CPI inflation) moderated slightly in May. CPI inflation, which reached an 8-year high in April, declined to 7.04 per cent in May. Reduction in excise duty on petrol and diesel and reduction in duty of other items played an important role in controlling retail inflation.

The Monetary Policy Committee of the Reserve Bank of India had increased the repo rate by 50 basis points, which has increased to 4.90 percent. India's GDP growth for FY23 has been estimated by the Reserve Bank at 7.2 percent. At the same time, the inflation forecast has been increased to 6.7 percent. The Monetary Policy Committee expects inflation to remain above 6 per cent in the first three quarters of FY23.