Exponential rise in food prices sequentially rocketed India's retail inflation in May as the Consumer Price Index (CPI) increased by 6.30 percent.
According to the data furnished by the National Statistical Office (NSO), the CPI rose by 6.30 percent last month from 4.23 percent in April.
Region-wise, the CPI Urban rose by 6.04 percent last month from 4.71 percent in April. Similarly, the CPI Rural climbed by 6.48 percent in May from 3.75 percent in April.
As per the NSO data, Consumer Food Price Index (CFPI) increased to 5.01 percent last month from a rise of 1.96 percent in April. The CFPI readings measure the changes in retail prices of food products.
WPI Inflation Reaches High of 12.94% Over Base Effect, Fuel Price
Meanwhile, base effect, along with high transportation fuel cost, lifted India's annual rate of inflation based on wholesale prices to 12.94 percent in May from a rise of 10.49 percent in April.
Significantly, this is the highest rate of WPI inflation in the current series. The previous high mark was observed in April.
The monthly rate of inflation, in May 2020 stood at (-) 3.37 percent.
On sequential basis, the month-over-month change in WPI index for May 2021 as compared to April was 0.76 percent.
"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 to the corresponding month of the previous year," the Ministry of Commerce and Industry said in a statement on WPI.
(This story has been edited for clarity.)
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