Fuel pushes inflation to 14-month high in May

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