India’s wholesale prices continue to drop, fall by 3.48% in May

India's wholesale prices dropped by 3.48% from May of last year, according to government data released on Wednesday. The rate of inflation fell in May 2023, primarily due to lower costs for mineral oils, basic metals, food, textiles, non-food items, crude oil and natural gas, chemicals, and chemical products.

The Food Index has dropped from 173.6 in April 2023 to 172.8 in May 2023 on a monthly basis. Based on the WPI Food Index, the rate of inflation dropped from 0.17% in April 2023 to (-) 1.59% in May 2023.

The Fuel & Power index for this key group fell by 2.62% to 148.6 (provisional) in May 2023 from 152.6 (provisional) in April 2023. In May 2023 compared to April 2023, prices for coal (-0.67%), mineral oils (-2.01%), and electricity (-5.46%) decreased.

This major group's Manufactured Products Index fell by 0.35% to 140.7 (provisional) in May 2023 from 141.2 (provisional) in April 2023, according to government data.

Seven groups of the 22 NIC two-digit groupings for manufactured goods have seen price increases, while 11 groups have seen price reductions. Electrical equipment, pharmaceuticals, medicinal, chemical, and botanical items, tobacco products, wood and products made of wood and cork, leather and related products, beverages, etc. are the groups that have seen significant price increases.

Basic metals, food, textiles, chemicals and chemical products, other manufacturing, etc. are a few of the industries that have had price decreases in May 2023 compared to April 2023.

This major group's Primary Articles index dropped from 177.3 (provisional) for the month of April 2023 to 175.3 (provisional) for the month of May 2023, a 1.13% decrease. Mineral prices went up by 0.90 percent in May 2023 compared to April 2023. May 2023 prices were lower than April 2023 prices for food items (-0.22%), non-food items (-1.87%), and crude oil and natural gas (-7.81%).

The government announced that the WPI for the month of June 2023 would release on July 14.

April WPI inflation falls to -0.92%, lowest in 34 months