India’s wholesale price index rose to 4.43% in the month of May, as compared to 2.26% in the same month last year, the Ministry of Commerce and Industry said on Thursday. The inflation rate was at a 14-month high, mainly due to increasing prices of fuel and vegetables.
The inflation rate based on wholesale prices was at 3.18% in April.
Among primary articles, inflation in food articles stood at 1.60% in May, against 0.87% in April. Inflation in vegetable prices rose to 2.51%, against a decline of 0.89% in April. Potato prices rose as much as 81.93%, against a 67.94% increase the previous month.
The “fuel and power” basket of the wholesale price index showed a sharp price rise of 11.22% in May from 7.85% in April. Prices of petrol and diesel rose to record levels between May 12 and May 29 after remaining stable for nearly three weeks.
On Thursday, the Reserve Bank of India had increased the repo rate for the first time since January 2014, as inflation rates have risen in recent months.