Fuel pushes in­fla­tion to 14-month high in May

Deccan Chronicle - - BUSINESS -

New Delhi, June 14: In­fla­tion based on whole­sale prices shot up to a 14-month high of 4.43 per cent in May on in­creas­ing fuel prices, prompt­ing in­dus­try to de­mand ac­tion from pol­i­cy­mak­ers to keep fuel prices un­der check.

The Whole­sale Price In­dex based in­fla­tion stood at 3.18 per cent in April and 2.26 per cent in May last year.

Ac­cord­ing to the data re­leased on Thursday, in­fla­tion in food ar­ti­cles was at 1.60 per cent in May 2018, as against 0.87 per cent in the pre­ced­ing month.

In­fla­tion in ‘fuel and power’ bas­ket rose sharply to 11.22 per cent in May from 7.85 per cent in April as prices of do­mes­tic fuel in­creased in line with ris­ing global crude oil rates.

In­fla­tion in veg­eta­bles climbed to 2.51 per cent in May, with potato in­fla­tion at a peak of 81.93 per cent. Price rise in fruits was in dou­ble dig­its at 15.40 per cent, while pulses saw a de­fla­tion of 21.13 per cent.

May in­fla­tion at 4.43 per cent was a 14-month peak. The pre­vi­ous high was in March 2017, when the WPI in­fla­tion stood at 5.11 per cent.

As­socham called for gov­ern­ment ac­tion to tame fuel price rise say­ing in­creas­ing prices of petrol and diesel may sig­nif­i­cantly im­pact im­port bills, which may sub­se­quently have an im­pact on ex­change rates. “Be­sides, it might also neg­a­tively im­pact in­put prices for the in­dus­try which has al­ready started feel­ing the pres­sure on its prof­itabil­ity,” As­socham sec­re­tary gen­eral D.S. Rawat said. — PTI

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