Consumer Price Index for industrial workers rose by 0.5% in May

The All-India Consumer Price Index-Industrial Workers (CPI-IW) for May increased by 0.5 points to reach 139.9, official data showed on Wednesday.

Wholesale food prices have increased month-on-month in May, with official data showing that the Whole Price Index for food rose from 5.52% in April to 7.40% in May.

However, the data suggests that on a year-on-year (y/y) basis, the inflation for May moderated to 3.86% as compared to 4.42% in May last year.

For the month of April in the current year, the All-India CPI-IW increased by 0.5 points and stood at 139.4.Inflation on a year-over-year basis for the month of April 2024 stood at 3.87% as compared to 5.09% in April 2023, as per the official data of the ministry.

The maximum upward pressure in the current index came from the Pan, Supari, Tobacco, and Intoxicants group, which contributed 161.2 points to the total change, the ministry said in a release.

Every month, the Consumer Price Index for Industrial Workers is compiled by the Labour Bureau, which is part of the Ministry of Labour and Employment. It is based on retail prices that are gathered from 317 markets located in 88 industrially significant centres around the nation.

Separately, as per the official data, retail inflation for agricultural labourers (CPI-AL) and rural workers (CPI-RL) remained almost unchanged at 7% and 7.02%, respectively, in May 2024, according to data released by the Ministry of Labour and Employment. CPI-AL and CPI-RL were 7.03% and 6.96% a month ago, respectively.

The data revealed that food and non-food items such as vegetables, pulses, wheat (atta), onion, milk, turmeric whole, ginger, fresh fish, jowar, pan leaf beside medicines, shirting cloth (C.M.), saree (C.M.), leather chappal, etc. drove the indices for May.

Going further, India's retail inflation rate softened marginally in May, though food prices continued to remain a pain point. The annual retail inflation in May was at a 12-month low of 4.75%.