The annual rate of inflation, based on monthly WPI, was 12.94% (Provisional) for the month of May, 2021 (over May, 2020) as compared to -3.37% in May 2020.
The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared the corresponding month of the previous year.
This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation.
In April 2021, WPI inflation hit double-digit at 10.49 per cent. “The annual rate of inflation, based on monthly WPI, was 12.94 per cent for the month of May 2021 (over May 2020) as compared to (-) 3.37 per cent in May 2020.
The month over month change in WPI index for the month of May 2021 (as compared to April 2021) was 0.76%.
Month over Month Change in Major Groups of WPI
- Primary Articles (Weight 22.62%):- The index for this major group declined by 0.86% to 150.5 (Provisional) in May, 2021 from 151.8 (Provisional) for the month of April, 2021. Prices of Non-food Articles increased in May, 2021 (as compared to April, 2021) by 1.26%, Crude Petroleum & Natural Gas by 0.67% and Food Articles declined by 1.48%.
- Fuel & Power (Weight 13.15%):- The index for this major group increased by 1.75% to 110.5 (Provisional) in May, 2021 from 108.6 (Provisional) for the month of April, 2021. Prices of Mineral Oils increased by 3.12% in May, 2021 as compared to April, 2021.
- Manufactured Products (Weight 64.23%): – The index for this major group increased by 1.24% to 131.0 (Provisional) in May, 2021. Out of the 22 NIC two-digit groups for Manufactured products, 17 groups have witnessed increase in prices, 4 groups have witnessed decrease in May 2021 as compared to April 2021 and for one group the prices remained unchanged. The increase in prices are primarily contributed by the manufacture of basic metals, food products, fabricated metals, chemical & chemical products, and electrical equipment. Four groups that have witnessed decrease in prices are manufacture of other non- metallic mineral products; wood and of products of wood and cork; textiles; tobacco products , while the manufacture of rubber and plastics products remain unchanged in May, 2021 as compared to April, 2021.
WPI Food Index (Weight 24.38%)
The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have decreased by 0.19% from 158.9 in April, 2021 to 158.6 in May, 2021.
Final index for March, 2021 (BASE YEAR: 2011-12=100)
For the month of March, 2021, the final WPI and inflation rate for All Commodities (Base: 2011-12=100) stood at 129.9 and 7.89% respectively. The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for May, 2021 are at Annex I. The Annual rate of Inflation (Y-o-Y) based on WPI for different commodity groups in the last six months is at Annex II. The WPI Index for different commodity groups in the last six months is at Annex III.
The WPI for May, 2021 have been compiled at a weighted response rate of 72 percent, while the final figure for March, 2021 is based on the weighted response rate of 91 percent. The Provisional figures of WPI will undergo revision as per the final revision policy of WPI.
The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of Wholesale Price in India (Base Year: 2011-12) for the month of May, 2021 (Provisional) and for the month of March, 2021 (Final) in this press release. Provisional figures of Wholesale Price Index (WPI) are released on the 14th of every month (or next working day) with a time lag of two weeks of the reference month based on data compiled from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released.