Higher food inflation pushes WPI up

Wholesale price index inched up in May to 0.8 per cent, the highest since November 2014. This was led by higher food inflation, especially in pulses, vegetables, sugar and milk. Fuel inflation continued to fall, while core inflation as measured by the CRISIL Core Inflation Indicator remained unchanged at 1.8 per cent. Food inflation (primary plus manufactured food) rose to 7.77 per cent, from 5.4 per cent in April due to a rise in primary food inflation. Primary food inflation inched up to 7.90 per cent, from 4.20 per cent previously, led by higher inflation in pulses, vegetables, milk, and condiments and spices. Inflation in processed food, which has been rising since September 2015, remained high at 7.50 per cent in May on the back of a rise in sugar inflation.