Due to falling costs for food, gasoline, and manufactured goods, the wholesale price-based inflation rate in May decreased by (-) 3.48 percent, reaching a three-year low. The inflation rate based on the wholesale pricing index (WPI) has been negative for two months in a row. The value for April was (-) 0.92 percent.
The WPI inflation rate in May 2022 was 16.63%. The wholesale inflation rate for May 2023 was (-) 3.48 percent, which is the lowest level since May 2020, when it was (-) 3.37 percent. Compared to 3.54 percent in April, the inflation rate for food items decreased to 1.51 percent in May.
The Commerce and industry ministry stated on Wednesday that the decline in the rate of inflation in May 2023 was principally caused by lower prices for mineral oils, basic metals, food items, textiles, non-food items, crude oil and natural gas, and chemical and chemical products.
Inflation in the fuel and power basket decreased to (-) 9.17% in May from 0.93% in April. Inflation in manufactured goods decreased from (-) 2.42 percent in April to (-) 2.97 percent in the reviewed month. The slowdown in WPI is consistent with a drop in retail inflation in May, which was recorded at a 25-month low of 4.25 percent.
