In May, India saw a notable narrowing of the gap between retail and wholesale inflation, with wholesale inflation reaching a 15-month high of 2.6%, while retail inflation stood at 4.75%. This 16-month low in divergence, at 2.14 percentage points, reflects a significant shift from past trends. The Wholesale Price Index (WPI) rose across major categories except fuel and power, with primary articles like food and crude petroleum showing notable increases. Analysts attribute historical divergences to index composition differences, highlighting WPI’s exclusion of service prices.