WPI stands at 0.79 per cent for the month of May

The much awaited Wholesale Price Index numbers commonly referred to as WPI are finally out. Wholesale price index for the month of May stands at 0.79 per cent, and in April the WPI was at 0.34 per cent. Vegetable inflation and Fruit Inflation stand at 12.91 per cent and 3.80 per cent respectively. 

Fruit inflation in the month of April was negative (-2.38) per cent. Vegetable inflation stands at 12.94 per cent and has increased by 3.65 per cent on MoM. Egg meat inflation stands at 9.75 per cent and has increased by 6.41 per cent from the previous month. Non – food article inflation for the month stands at 0.4 per cent. The May inflation is highest since October 2014.

The Wholesale Price Index or WPI is the price of a representative basket of wholesale goods. Some countries use the changes in this index to measure inflation in their economies. Earlier in India CPI was the major indicator of inflation, however the country has adopted WPI as the major indicator of inflation.

The Indian WPI figure in the past was released weekly on every Thursday. However since 2009 it has been made monthly. The release data also narrows the chances of the RBI rate cuts in the coming months.