India's wholesale inflation hits 3-year low in May

This is the second month in a row that wholesale inflation has been below zero. The wholesale inflation rate in the country was minus 0.92 percent in April.

 

New Delhi : Good news for common people about the price hike. After the retail inflation, the wholesale inflation rate also decrease to a record low in India. The wholesale inflation rate fell to minus 3.48 percent in May. This rate is the lowest in 3 years. Wholesale inflation eased mainly due to lower food prices, fuel and manufactured goods.

This is the second month in a row that wholesale inflation has been below zero. The wholesale inflation rate in the country was minus 0.92 percent in April. On a year-on-year basis, wholesale inflation stood at 16.63 percent in May 2022. Wholesale inflation rate for May 2023 is lowest in last 3 years. Earlier the wholesale inflation rate in May 2020 was 3.37 percent. According to government data, food inflation eased to 1.51 percent in May. This food inflation was 3.54 percent in April.

"Falls in prices of mineral oil, base metals, food products, textiles, crude petroleum, natural gas and other commodities were the main factors behind the rise in wholesale inflation in May," the Ministry of Commerce and Industry said. Inflation in the energy and power sector fell to -9.17 percent in May. This amount was 0.93 percent in April.

Not only has wholesale inflation come down, retail inflation has also come down. Retail inflation also fell to a record low in the last 25 months. The retail inflation report was brought out by the Center on Monday. According to the report, retail inflation in the country stood at 4.25 percent in May 2023. The rate was 4.7 percent in April. In other words, the wholesale inflation rate has decreased compared to last month.

The RBI has a tolerance range of 2 percent to 6 percent on retail inflation. 6 percent of this is the maximum tolerance limit. Retail inflation has come down to its lowest level in two years due to lower food prices, the Center reported. Incidentally, the main target of Reserve Bank of India is to bring this rate below 4 percent.