Rising food prices drive third consecutive monthly increase; vegetable costs surge sharply
A view of the wholesale vegetables market. Pic/PTI
The wholesale inflation rose for the third consecutive month in May at 2.61 per cent on account of rise in prices of food articles, especially vegetables, and manufactured items.
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The wholesale price index (WPI) based inflation was 1.26 per cent in the previous month. It was (-) 3.61 per cent in May 2023. “Positive rate of inflation in May, 2024 is primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc,” the Ministry of Commerce & Industry said in a statement on Friday.
As per the data, inflation in food articles rose 9.82 per cent in May, as against 7.74 per cent in April. Inflation in vegetables was 32.42 per cent in May, up from 23.60 per cent in the previous month. Onion inflation was at 58.05 per cent, while potato was 64.05 per cent.
Inflation to average 4.5% this fiscal: CRISIL
Leading ratings and economic research firm CRISIL is of the view that inflation is expected to average 4.5 per cent for the current financial year. “Assuming a normal monsoon, we expect food inflation to soften, while non-food inflation could see an uptick but is expected to remain soft on the back of benign commodity prices,” CRISIL said. The rating firm said that consumer price index (CPI) inflation moderated marginally to 4.75 per cent in May from 4.8 per cent in April 2024.
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