Wholesale inflation up for 2nd month; rises to 0.79% in May
On Monday, data showed that CPI accelerated to hit a two-year high on the back of a rise in food articles and commodity prices.
India's wholesale inflation rose to 0.79% in May versus 0.34% in April.
The wholesale inflation figures were inflated in the month on the back of a steep rise in food articles inflation. Food inflation grew to 7,88% compared to 4.23% in the month.
Inflation in vegetables came in at 12.94%, a sharp rise from 2.21%, a month earlier. Pulses inflation remained stubborn at 35.56%.
Prices of egg, meat and fish paced up by 9.75% and in fruits the rise was 3.80%. However, kitchen staple onion continued to witness decline at (-)21.70% in May.
Manufactured products inflation too inched up to 0.91% from 0.71% in April.
The hardening of WPI food inflation follows the trend of retail inflation released yesterday.
In May, primary articles inflation was at 4.55% compared to 2.34% in April.
Wholesale inflation grew for the second straight month.
On Monday, data showed that consumer inflation figures hit a 2-year high on the back of rising food prices and an uptick in commodity prices.
After the wholesale inflation data released, the benchmark BSE Sensex was trading at 26,375.92, down 20.85 points or 0.08% from previous day's close. Markets opened in the red on Tuesday on the back of high consumer inflationary figures released on Monday. In the earlier session too, Sensex shed 1.3% intraday due to weak macroeconomic data and external economic worries like a probable Brexit and uncertainty over the US Federal Reserve interest rate hike.
(With PTI inputs)