As industries and businesses slowed down during the nationwide lockdown, the demand for fuel and power took a major hit, deflating prices by around 20 per cent on-year in May 2020. The prices of crude petroleum and natural gas fell 23.18 per cent in May, compared to March 2020, according to the Ministry of Commerce & Industry. However, the prices for coal and electricity remained unchanged during this period. Amid slow economic activity and low demand, the overall wholesale prices in the month of May also saw a steep fall of 3.21 per cent. In the same month last year, WPI rose by 2.79 per cent.
While wholesale prices of most of the products deflated, the food prices were still on a rise. The wholesale prices of food rose by 2.31 per cent in May. However, the inflation rate slowed down from 5.20 per cent in March 2020. While potato prices surged by 52.25 per cent m-o-m in May, the prices of onion rose by 6.26 per cent, and pulses rose by 12 per cent.
