NEW DELHI, June 14 Reuters India39;s wholesale prices rose 2.61 in May, the most in 14 months, mainly driven by food items, government data showed on Friday.
May inflation was higher than the 2.5 expected by economists polled by Reuters and up from a 1.26 yearonyear rise in April.
Food prices rose 7.4 on year compared with an increase of 5.52 in April, while prices of vegetables were up 32.42 on year against a 27.94 rise in the previous month.
Manufactured product prices rose 0.78 yearonyear against a 0.42 drop in the previous month. Fuel and power prices rose 1.35 compared with a 1.38 rise in April.
India39;s retail inflation rate eased slightly in May to 4.75, partly helped by a fall in fuel prices although food prices remained elevated, government data showed on Wednesday.
Food inflation is worrying and that will put pressure on retail food inflation, said Paras Jasrai, an economist at India Ratings Research. The retail food inflation is expected to be above 8 in June, he said.
Reporting by Nikunj Ohri and Manoj Kumar; Editing by Janane Venkatraman
Source Reuters