Inflation rate maintains a declining trend

New Delhi: Maintaining a declining trend, the annual inflation rate based on all India Wholesale Price Index (Base Year: 2011-12) falls to (-)3.48% (Provisional) in May 2023 (over May 2022) against (-) 0.92% recorded in April 2023, figures released by the Department for Promotion of Industry and Internal Trade of the Ministry of Commerce and Industry revealed today. The decline in the rate of inflation in May 2023 is primarily due to a fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum and natural gas, and chemical and chemical products.

 The index numbers and inflation rate for the last three months of all commodities and WPI components are given below:

Note: P: Provisional, F: Final, * Annual rate of WPI inflation calculated over the corresponding month of the previous year

The month-over-month change in WPI for the month of May 2023 stood at (-) 0.86 % as compared to April, 2023. The monthly change in WPI for the last six-month is summarized below:

Note: P: Provisional, # Monthly rate of change, based on month over month (M-o-M) WPI calculated over the preceding month

Month over Month Change in Major Groups of WPI:

• Primary Articles (Weight 22.62%): The index for this major group declined by 1.13% to 175.3 (provisional) in May 2023 from 177.3 (provisional) for the month of April 2023. Prices of Minerals (0.90%) increased in May 2023 as compared to April 2023. Prices of Food Articles (-0.22%), Non-food Articles (-1.87%) and Crude Petroleum & Natural Gas (-7.81%) declined in May 2023 as compared to April 2023.
• Fuel & Power (Weight 13.15%): The index for this major group declined by 2.62% to 148.6 (provisional) in May, 2023 from 152.6 (provisional) for the month of April 2023. Prices of Coal (-0.67%), Mineral Oils (-2.01%) and Electricity (-5.46%) declined in May 2023 as compared to April 2023.
• Manufactured Products (Weight 64.23%): The index for this major group has declined by 0.35% to 140.7 (provisional) in May 2023 from 141.2 (provisional) for the month of April 2023. Out of the 22 NIC two-digit groups for Manufactured products, 7 groups have witnessed an increase in prices, whereas 11 groups have witnessed a decrease in prices. The groups that have recorded major increases in prices are electrical equipment; pharmaceuticals, medicinal, chemical and botanical products; tobacco products; wood and products of wood & cork; leather and related products; beverages, etc. Some of the groups that have witnessed a decrease in prices are basic metals; food products; textiles; chemical and chemical products, and other manufacturing in May 2023 as compared to April 2023.
• WPI Food Index (Weight 24.38%): The Food Index consisting of ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group has decreased from 173.6 in April 2023 to 172.8 in May 2023. The rate of inflation based on the WPI Food Index decreased from 0.17% in April 2023 to (-) 1.59% in May 2023.
• The final index for the month of March 2023 (Base Year: 2011-12=100): For the month of March 2023 the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 151.0 and 1.41% respectively. The details of all India Wholesale Price Indices and Rates of Inflation for different commodity groups based on updated figures are in Annex I. The Annual rate of Inflation (Y-o-Y) based on WPI for different commodity groups in the last six months is in Annex II. The WPI for different commodity groups in the last six months is in Annex III.
• Response Rate: The WPI for May 2023 has been compiled at a weighted response rate of 89.8 per cent, while the final figure for March 2023 is based on the weighted response rate of 92 per cent.

Annex-I

All India Wholesale Price Indices and Rates of Inflation (Base Year: 2011-12=100) for May 2023

Note: * = Provisional, Mf/o = Manufacture of

Annex-II

Note: * = Provisional, Mf/o = Manufacture of

Annex-III

Note: * = Provisional, Mf/o = Manufacture of