Inflation Numbers Rise, P Chidambaram, Former Finance Minister Blames Modi Govt's Policy On Fuel Prices

The wholesale price index (WPI) based inflation in May hit an all-time high of 12.94 per cent. this is owing to rising crude oil prices & those of manufactured products. Former Finance Minister P Chidambaram blames the Modi government’s policy on fuel prices.

P Chidambaram tweeted, “Pulses inflation is 9.39%. Edible oil inflation is 30%. These are high marks for competent economic management”. Overall it was the fifth consecutive month when WPI breached the higher levels. Earlier it was at 10.49 per cent level in April. This was a 11-year high. Apart from rise in crude oil prices and higher costs of manufactured products, low base effect also led to WPI inflation going through the roof in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent. The manufactured products inflation rose to 10.8 per cent in May 2021 as compared to 9 per cent in the previous month. Meanwhile, core inflation spiked to 10 per cent compared to 8.3 per cent in April 2021. Fuel and power inflation also went up by 37.6 per cent during May, against 20.94 per cent in April. At the same time though, food prices showed a slight fall and were at 4.31 per cent in May 2021. Onion prices however witnessed a jump and were at 23.24 per cent in May.