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Wholesale inflation eases to 14-month low

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Wholesale inflation eases to 14-month low

NEW DELHI: Wholesale price inflation in May eased to a 14-month low, led by a sharp easing in food, fuel, and softer base metal prices. However, experts cautioned that the Israel-Iran conflict and global trade tensions could impact crude oil prices and the overall price situation in the months ahead.Data released by the commerce and industry ministry on Monday showed inflation, as measured by the wholesale price index (WPI), slowed to 0.4 per cent in May, down from 0.9 per cent in April. This is the sixth consecutive month that wholesale price inflation has slowed.Vegetable inflation fell 21.6 per cent year-on-year after an 18.3 per cent contraction in April, while overall food articles inflation fell 1.6 per cent during May. Onion, tomato, and potato (TOP), spices, food grains, eggs, meat, and fish contributed significantly to the moderation in food inflation in May. The vegetable index fell for the fourth month in a row. Potato inflation was down 29.4 per cent in May, while onion prices fell by 14.4 per cent.Last week, data showed that retail inflation plummeted to a 75-month low in May.





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