New Delhi2 hours ago
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Wholesale inflation has increased to 1.26% in the month of April. This is a 13-month high level of inflation. Earlier in March 2023, the wholesale inflation rate was 1.34%. Inflation has increased due to increase in prices of food items. Whereas a month before this, in March 2024, it was 0.53%. Whereas wholesale inflation was 0.20% in February and 0.27% in January.
Food inflation rate increased in April
- Food inflation increased from 4.65% to 5.52% compared to March.
- The inflation rate of daily necessities has increased from 4.51% to 5.01%.
- Wholesale inflation of fuel and power increased from -0.77% to 1.38%.
- Wholesale inflation of manufacturing products increased from -0.85% to -0.42%.
Decline in retail inflation
Earlier in April, the retail inflation rate was the lowest in 11 months. It has come down to 4.83% in April. In June 2023 it was 4.81%. However, food items have become expensive in April. The National Statistical Office had released these figures on Monday 14 May.
Whereas a month ago i.e. in March 2024, the inflation rate was 4.85%. Food inflation rate has increased from 8.52% to 8.78%. Rural inflation rate has come down from 5.45% to 5.43% and urban inflation rate has come down from 4.14% to 4.11%.
Impact of WPI on common man
Prolonged increase in wholesale inflation has a negative impact on most productive sectors. If wholesale prices remain high for too long, producers pass the burden on to consumers. Government can control WPI only through tax.
For example, in the situation of sharp increase in crude oil, the government had reduced the excise duty on fuel. However, the government can reduce tax cuts only within a limit. In WPI, more weightage is given to factory related goods like metal, chemical, plastic, rubber.
How is inflation measured?
There are two types of inflation in India. One is retail, i.e. retail and the other is wholesale inflation. Retail inflation rate is based on the prices paid by ordinary consumers. It is also called Consumer Price Index (CPI). At the same time, Wholesale Price Index (WPI) means the prices that one businessman charges from another businessman in the wholesale market.
Different items are included to measure inflation. For example, the share of manufactured products in wholesale inflation is 63.75%, primary articles like food 20.02% and fuel and power 14.23%. At the same time, the share of food and products in retail inflation is 45.86%, housing is 10.07% and other items including fuel also have a share.
