New Delhi16 minutes ago
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Wholesale inflation has risen to a 16-month high in June. According to the data released today on July 15, wholesale inflation has risen to 3.36% in June. In February 2023, the wholesale inflation rate was 3.85%.
At the same time, wholesale inflation rose to a 15-month high of 2.61% in May. Earlier in April 2024, inflation was 1.26%, which was a 13-month high. On the other hand, retail inflation also saw a rise on Friday.
Food inflation increased by 1.28% in June
- Food inflation rate increased from 7.40% to 8.68% in May.
- The inflation rate of daily use items increased from 7.20% to 8.80%.
- Wholesale inflation rate of fuel and power declined from 1.35% to 1.03%.
- The wholesale inflation rate of manufacturing products increased from 0.78% to 1.43%.
Impact of WPI on common man
Prolonged high wholesale inflation adversely affects most productive sectors. If wholesale prices remain high for a long time, producers pass on the burden to consumers. The government can control WPI only through taxes.
For example, in the event of a sharp rise in crude oil, the government had reduced excise duty on fuel. However, the government can reduce tax cuts only within a limit. Factory related goods like metal, chemical, plastic, rubber have a higher weightage in WPI.
How is inflation measured?
There are two types of inflation in India. One is retail and the other is wholesale inflation. The retail inflation rate is based on the prices paid by the common customers. It is also called Consumer Price Index (CPI). On the other hand, Wholesale Price Index (WPI) means the prices that a trader charges from another trader in the wholesale market.
Different items are included to measure inflation. For example, in wholesale inflation, manufactured products have a share of 63.75%, primary articles like food 20.02% and fuel and power 14.23%. Whereas, in retail inflation, food and products have a share of 45.86%, housing 10.07% and other items including fuel also have a share.
Retail inflation rose to 5.08% in June
Retail inflation has risen to 5.08% in June. This is the highest level of inflation in 4 months. Inflation was 4.85% in April. Inflation was 4.75% a month ago in May. The National Statistical Office released these figures on Friday, 12 July.
Inflation has increased due to the rising cost of food items. Food inflation has increased from 8.69 to 9.36%. Urban inflation has also increased from 4.21% to 4.39% on a month-on-month basis. Rural inflation has also increased from 5.34% to 5.66%.
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