WPI Inflation: After retail, wholesale inflation also came down, saw a decline of 3.5 percent in May

The level of inflation in the country is continuously decreasing. Two days ago the figures of retail inflation came, now on Wednesday the figures of wholesale inflation have come and there has been a decline of 3.5 per cent in it.

The effect of the Reserve Bank of India's efforts to reduce inflation is visible. First, the softening in the retail inflation rate was seen, and now on Wednesday the figures of wholesale inflation have also come. Inflation based on wholesale prices has come down on an annual basis in May. There has been a decline of 3.48 percent in this. This is the lowest level of wholesale inflation in the last 3 years.

Earlier, in the month of April, there was a decline of 0.92 percent in wholesale inflation. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has released its figures. Compared to the month of April, this decline in wholesale inflation has been 0.86 percent.

Prices of food items, petrol and diesel fell

The official statement said that the main reason for the decline in wholesale inflation in May was the decrease in the prices of mineral oil, food items, textile, crude oil and natural gas and chemical and chemical products.

In the food index, the wholesale inflation rate has fallen by 1.59 percent. While the rate of inflation in manufactured products declined by 2.97 percent, fuel and electricity by 9.17 percent and primary articles by 1.79 percent.

Retail inflation also at a 25-month low

Earlier on Monday, retail inflation figures were released. It has come down to 4.25 per cent in May, which is the lowest level of retail inflation after April 2021. Retail inflation figures are useful in deciding the monetary policy of the Reserve Bank of India.

To bring down inflation, RBI started increasing the repo rate from May last year, which continued till February this year and the total repo rate increased by 2.5 per cent. At present the repo rate is at 6.5 which has remained the same even after the monetary policy of April and June.