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 Base effect, along with high transportation fuel cost, lifted India's annual rate of inflation based on wholesale prices to 12.94 per cent in May from a rise of 10.49 per cent in April.

Significantly, this is the highest rate of WPI inflation in the current series. The previous high mark was observed in April.

The monthly rate of inflation, in May 2020 stood at (-) 3.37 per cent.

On sequential basis, the month over month change in WPI index for May 2021 as compared to April was 0.76 per cent.

"The high rate of inflation in May 2021 is primarily due to low base effect and rise in prices of crude petroleum, mineral oils viz. petrol, diesel, naphtha, furnace oil etc. and manufactured products as compared the corresponding month of the previous year," the Ministry of Commerce and Industry said in a statement on WPI.