WPI Inflation at Record High of 15.08% in April on Price Rise Across All Items

BANKING AND ECONOMY

India’s wholesale price index (WPI)-based inflation rate rose to 15.08% in April 2022 from 14.55% in March 2022. The inflation rate was raised from 10.74% during the same month a year ago. The inflation was due to the rising commodity and vegetable prices.

The wholesale price inflation rate is now in double digits for 13 consecutive months.

As per the released data, the vegetables' inflation picked up in April to 23.24% leading to food inflation of 8.35%. In the same month, the fuel inflation rose to 38.66% and the inflation for manufactured products increased to 10.85%.

The purpose of WPI-based inflation is to inspect the movement in prices of goods that reflect supply and demand in industry, construction, and manufacturing. WPI is released by the Economic Advisor in the Ministry of Commerce and Industry. The index basket of WPI categorizes commodities into three groups — primary articles, fuel, and power & manufactured products.

Recently, the RBI hiked the policy rates, and the retail inflation rate raised to a 95-month high in April 2022 at 7.8%. The RBI is expected to further increase the policy rate in its June meeting to manage rising inflationary expectations.

 

   Important points for the exam:

  • India’s wholesale price index (WPI)-based inflation rate rose to 15.08% in April 2022 from 14.55% in March 2022 due to the rising commodity and vegetable prices.
  • The inflation rate was raised from 10.74% during the same month a year ago. 
  • As per the released data, the vegetables' inflation picked up in April to 23.24% leading to food inflation of 8.35%. 
  • In the same month, the fuel inflation rose to 38.66% and the inflation for manufactured products increased to 10.85%.
  • The purpose of WPI-based inflation is to inspect the movement in prices of goods that reflect supply and demand in industry, construction, and manufacturing.

   Facts to know:

  • WPI is released by the Economic Advisor in the Ministry of Commerce and Industry.
  • Union Minister of Commerce and Industry: Mr.Piyush Goyal.
  • CPI-based inflation was measured by the National Statistical Office (NSO).
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