WPI Inflation declined to 4.7 Percent in May 2013

As per the official data released on 14 June 2013, the inflation in India that is based on the Wholesale Price Index fell to 4.7 percent in May 2013. Decline in the prices of manufactured items and a slight rise in the prices of food items resulted in the measured fall of inflation.

In April 2013, the WPI based inflation was measured at 4.89 percent. In May 2012 inflation was measured at 7.55 percent. The released data, the WPI inflation in the category of the manufactured items declined to 3.11 percent in May 2013 from 3.41 percent of April 2013. A sharp decline in the inflation from 7.59 percent in April 2013 to 4.88 percent in May 2013 was measured in the category of non food articles that includes fibre, minerals and oil seeds.

The inflation in the food article category rose from 6.08 percent in April to 8.25 percent in May 2013. This rise was measured due to the rise in the prices of onions, cereals, protein-based items and vegetables. Vegetable inflation in May 2013 stood at 4.85 percent against -9.05 percent in April 2013. Inflation on wheat declined to 12.65 percent from 13.89 percent and for potatoes it declined from -2.42 percent in April 2013 to -3.44 percent in May 2013.

In case of rice, cereals and pulses it was measured at 18.48 percent, 16.01 percent and 5.95 percent, respectively. Inflation measured in egg, meat and fish items rose to 11.21 percent in May 2013 from 10.44 percent in April 2013. The latest released data displayed the fall in retail inflation to a fifteen month low of 9.31 percent in May 2013.

The data on inflation will be monitored closely by the Reserve Bank of India for formulation of the mid-quarter policy to be announced on 17 June 2013.