After a relatively positive news emerged on account of the inflation rate, in terms of the Consumer Price Index (CPI), India has reported a dramatic spike in the Wholesale Price Index or WPI. The wholesale inflation for the final month of India's summer stood at 2.61 per cent.
WPI Spikes to 2.61%
This rate stood at 1.26 per cent in the month of April, exhibiting a mammoth increase of 1.35 per cent.
This, according to reports, is the highest WPI in 15 months. As for the aforementioned inflation rate, measured through the consumer price index, the inflation rate dropped for the month of May to 4.75 per cent, compared to 4.83 per cent.
In addition, the rate for fuel and power dropped from 1.38 per cent in April to 1.35 per cent in May. Meanwhile, the WPI rate for manufactured products also jumped from -0.42 per cent to 0.78 per cent. | Freepik
When we come back to the wholesale index, the biggest culprit for the dramatic jump in cumulative number appears to be a rise in 'primary articles', Primary articles are items used in daily consumption ranging from food particles, minerals, and vegetables. The wholesale rate for this jumped from 5.01 per cent in April to 7.20 per cent.
In addition, the rate for fuel and power dropped from 1.38 per cent in April to 1.35 per cent in May. Meanwhile, the WPI rate for manufactured products also jumped from -0.42 per cent to 0.78 per cent.
The NSE Nifty also saw a boost in its number after a temporary slump. The Nifty rose 0.19 per cent or 44.70 points, taking the index to 23,443.60. Meanwhile, Nifty Bank also rose in green. The index increased by 0.29 per cent or 143.50 points, reaching 49,990.20. | Image: Wikipedia (Representative)
Indian Markets React
The Ministry of Commerce, in the PIB statement, said, "Positive rate of inflation in May, 2024 is primarily due toincreasein prices offood articles, the manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc."
The Indian markets, which had a slow start to the day, entered the red territory for a while, before returning to trading in the green. Halfway through the day, the BSE Sensex gained 0.12 per cent or 93.41 points, taking the cumulative tally to 76,904.31.
The NSE Nifty also saw a boost in its number after a temporary slump. The Nifty rose 0.19 per cent or 44.70 points, taking the index to 23,443.60. Meanwhile, Nifty Bank also rose in green. The index increased by 0.29 per cent or 143.50 points, reaching 49,990.20.
