WPI inflation rises to five-month high of 6% in May 2014

Crore inflation rises to 3.8% in May 2014 from 3.4% in the previous month

The Wholesale Price Index (WPI) based inflation increased to 6.01% in May 2014 from 5.2% in April 2014. The inflation for three major sub-groups was higher, while core inflation also moved up in May 2014. The inflation for primary articles increased from 7.1% in April 2014 to 8.6% in May 2014. The inflation for fuel and power group also moved up to 10.5% in May 2014 from 8.9% in April 2014, while the inflation for manufactured products galloped to 3.6% in May 2014 from 3.2% in April 2014.

As per the major commodity group wise inflation, the inflation for fruits, milk, 'egg, meat & fish', spices, tea, coffee, oilseeds, metallic minerals, mineral oils, electricity, paper products, chemical products, basic metals etc increased contributing to the overall rise in inflation in May 2014. On the other hand, the inflation for vegetables, flowers, crude oil, textiles items, machinery & machine tools etc eased in May 2014 from April 2014 level.

The inflation for food items (food articles and food products) increased from 6.3% in April 2014 to 7% in May 2014. Meanwhile, the inflation for non-food items (all commodities excluding food items) also moved up from 4.7% in April 2014 to 5.7% in May 2014. The core inflation (manufactured products excluding foods products) galloped to 3.4% in April 2014 to 3.8% in May 2014.

The contribution of primary articles to the overall inflation rose to 37.8% (at 229 bps to 6.0% inflation) in May 2014 from 36.4% (at 188 bps of 5.2%) in April 2014. The contribution of fuel product group eased slightly to 29% (176 bps) in May 2014 from 29.1% (151 bps) in April 2014, while that of manufactured products declined to 33.2% (201 bps) in April 2014 from 34.5% (178 bps) in April 2014.

The contribution of food item (food articles and food products) to inflation eased to 32.7% (198 bps to 6.0%) in May 2014 from 34.4% (178 bps) in April 2014, while that of non-food items (all commodities excluding food items) increased to 67% (406 bps) in May 2014 from 65.6% (340 bps) in April 2014.

As per the revised data available, the inflation figure for Match 2014 has been revised upwards to 6% from 5.7% reported earlier.

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