14-06-2023 : India’s wholesale price index (WPI)-based inflation remained in the negative zone, further declining to (-) 3.48% in May 2023.
According to data released by the Ministry of Commerce & Industry on Wednesday, the decrease in inflation was primarily attributed to the falling prices of various items, including mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum, and natural gas.
The official release stated, “The annual rate of inflation based on all India Wholesale Price Index (WPI) is (-) 3.48% (Provisional) for the month of May 2023 (compared to May 2022), as against (-) 0.92% recorded in April 2023.”
The decline in May 2023’s inflation rate was mainly driven by the decrease in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum, natural gas, and chemical products, as mentioned in the release.
Both wholesale and retail inflation have been on a downward trajectory for several months. Recent official data revealed that consumer price index (CPI)-based inflation dropped to a 20-month low of 4.3% in May 2023, primarily due to softer food and fuel prices.
As inflation continues to decline, the Reserve Bank of India (RBI) has maintained the policy repo rate at 6.5% after six consecutive hikes.