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Food prices also push up India’s wholesale inflation


New Delhi: With potatoes 60 percent dearer in bulk markets and pulses costlier by 36 percent over the past year, India’s annual wholesale inflation rose for the second month in May to 0.79 per cent from 0.34 per cent in the month before, official data showed on Tuesday.

Data on wholesale price index released by the Commerce and Industry Ministry further showed that the annual rise in food articles was at a steep 7.88 percent in May as against 4.23 percent in April — a build-up of as much as 4.47 per cent in just two months.

On Monday, official data showed that India’s annual retail inflation has shot up to a near-two-year high of 5.76 per cent in May from 5.47 per cent, due again to a sharp rise in the prices of food articles, notably pulses, vegetables and sugar.

According to Tuesday’s data, potato prices in wholesale markets have jumped 38.36 percent between March and May this year, the prices of vegetables are up 19.54 per cent, pulses are dearer by 11.34 per cent, and milk is now costlier by 9.39 per cent.

Among the three major groups, the index for fuels (May 2016 over May 2015) fell 6.14 percent due to a drop of 10.86 per cent in prices of petrol and 5.01 percent in diesel, while the index for manufacturing products rose 0.91 per cent.

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