India's CPI-IW Rises, While Annual Inflation Moderates

The Consumer Price Index for Industrial Workers saw a slight increase in May, marking a notable year-on-year decrease in inflation. However, food prices continued to rise, impacting indices. Retail inflation for agricultural and rural workers remained steady. The annual retail inflation hit a 12-month low.

The All-India Consumer Price Index-Industrial Workers (CPI-IW) for May rose by 0.5 points, reaching 139.9, according to official data released on Wednesday. Wholesale food prices underwent a month-on-month increase in May, with the Whole Price Index for food climbing from 5.52 percent in April to 7.40 percent in May.

Despite this, year-on-year inflation for May decreased to 3.86 percent, down from 4.42 percent the previous year. In April of the current year, the All-India CPI-IW increased by 0.5 points to 139.4.

Year-over-year inflation for April 2024 was 3.87 percent, a decline from 5.09 percent in April 2023, per official data from the ministry. Pan, Supari, Tobacco, and Intoxicants groups exerted the maximum upward pressure on the current index, contributing 161.2 points, the ministry reported.

The Consumer Price Index for Industrial Workers is compiled monthly by the Labour Bureau, a division of the Ministry of Labour and Employment. The data is based on retail prices collected from 317 markets across 88 industrially significant centres in the country. According to the official data, retail inflation for agricultural labourers (CPI-AL) and rural workers (CPI-RL) remained almost unchanged at 7 percent and 7.02 percent, respectively, in May 2024. In the previous month, CPI-AL and CPI-RL were 7.03 percent and 6.96 percent, respectively.

The data indicated that both food and non-food items—including vegetables, pulses, wheat, onion, milk, turmeric, ginger, fish, jowar, pan leaf, medications, shirting cloth, sarees, and leather chappals—drove the indices for May. Additionally, India's retail inflation rate marginally softened in May, even as food prices remained a significant burden. Annual retail inflation reached a 12-month low of 4.75 percent in May. (ANI)

(With inputs from agencies.)