In May, wholesale price inflation (WPI) has come down to 0.39 percent. The wholesale price inflation -based inflation in April was 0. 85 percent, compared to 2. 74 percent in May last year. According to PTI news, this was revealed in the government data released on Monday. The Ministry of Industry said in a statement that the positive rate of inflation in May 2025 is mainly due to the increase in prices of food products, electricity, other manufacturing, chemicals and chemical products, manufacturing of other transport equipment and manufacturing prices of non-food items etc.
How much change in wholesale inflation figures?
According to the news, according to the latest data of wholesale inflation, food items saw an deflation of 1.56 percent in May, while in April there was an deflation of 0. 86 percent, while vegetables saw a sharp decline. Deflation in vegetables in May was 21. 62 percent, while in April it was 18. 26 percent. However, inflation in manufactured products was 2.04 percent, while in April it was 2.62 percent. Fuel and electricity also saw an deflation of 2.27 percent in May, while inflation was 2.18 percent in April.
RBI remains alert on inflation
The Reserve Bank of India (RBI) mainly takes into account retail inflation when creating monetary policy. The data released last week showed that retail inflation came to a six -year low of 2.82 percent in May. The main reason for this is softening of food prices. The RBI reduced the benchmark policy interest rates by 0.50 percent to 5.50 percent this month amid reduction in inflation.
What is RBI’s estimate regarding inflation
The RBI has recently reduced its inflation rate estimate from four percent to 3.7 percent for the current financial year 2025-26. This estimate of average retail inflation is the lowest in recent years. In its monetary policy announcement in April, the RBI had estimated an average of four percent of retail inflation in FY 2025-26. RBI says that in view of the general monsoon, the Consumer Price Index (CPI) based inflation for FY 2025-26 is now estimated to be at 3.7 percent.
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