New Delhi14 hours ago
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Wholesale inflation has increased to the highest level in 15 months in May. According to the data released today i.e. on June 14, wholesale inflation has increased to 2.61% in May. The wholesale inflation rate in February 2023 was 3.85%.
Whereas in April 2024, inflation was 1.26%, which was the highest level in 13 months. A month before this, in March 2024, it was 0.53%. Wholesale inflation in February was 0.20%. On the other hand, a decline in retail inflation was seen on Wednesday.
Food inflation increased by 1.88% in May
- Food inflation increased from 5.52% to 7.40% compared to April.
- Inflation rate of daily essential goods increased from 5.01% to 7.20%.
- The wholesale inflation rate of fuel and power decreased from 1.38% to 1.35%.
- Wholesale inflation of manufacturing products increased from -0.42% to 0.78%.
Retail inflation declined in May
Earlier yesterday i.e. on June 12, retail inflation figures for May were released. According to this, retail inflation in May stood at 4.75%. This is a 12-month low. Whereas a month ago i.e. in April, retail inflation had come down to 4.83%.
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 event of a 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). Whereas, Wholesale Price Index (WPI) means the prices that one trader charges from another trader 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.
