India’s inflation rose to the level of 7.55 per cent in May mainly due to an increase in the prices of potato, pulses and wheat. The Wholesale Price Index (WPI) that forms the basis for the inflation in the country was recorded at the level of 7.23 per cent in April. The index was higher at 9.56 per cent during the May of 2011.

The overall food inflation in the country increased at 10.74 per cent in May compared to 10.49 per cent in the earlier month. Food items together account for 14.3 per cent of the country’s WPI. The prices of potato rose 68.10 per cent and that of pulses and wheat rose by 16.61 per cent and 6.81 per cent respectively during the month.

On the other hand, vegetables prices fell 49.43 per cent in May compared to 61 per cent in April. The prices of eggs, meat and fish rose 17.89 per cent in the month compared to 17.54 per cent in April. Milk prices recorded an increase of 11.90 per cent and rice and cereals turned costlier by 5.07 per cent and 5.73 per cent respectively.

Non-food manufactured inflation moderated to 5.02 per cent in May compared to 5.12 per cent in April 2012.