The inflation rate of the Wholesale Price Index reduced and came to the lowest of 3.48% in May. Due to this, prices won't go higher for a particular time period. The main reasons behind low WPI are falling prices of fuel and manufactured goods. There is a major difference between the yearly inflation rate and the monthly inflation rate, but both seem to be in the negative zone. In May 2022, WPI inflation was at 16.63% while this April it was negative 0.92%. There is a 2.97% contraction on a yearly basis.
The low rate of inflation is mainly concerned with the low price rate of mineral oil, basic metals, food products, textiles, non-food articles, crude petroleum and natural gas, chemical products etc. This fall in WPI resulted in a decline in inflation of Consumer Price Index. It's recorded 4.25 percent after two years.
The decline in inflation rate looks as follows: 1.51% in food articles, (-)20.12% in vegetables. There is a slight uptick in pulses and wheat of 5.76% and 6.15% respectively.
There are possibilities that this rate will revolve around nearby numbers for the month of June, but that will get clear only after the release of the WPI for June 2023 in July.
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