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- US Iran Tensions Fuel Inflation Rise To 8.30% | Daily Necessities & Fuel Costs Surge
New Delhi8 minutes ago
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Wholesale inflation (WPI) has increased to 8.30% in March. In March it was at 3.88%. That means it has increased by 4.42% within a month. Inflation remained at a 42-month high in April. It reached 8.39% in October 2022.
The Commerce Ministry has released wholesale inflation figures today i.e. on May 14. This increase in inflation has happened at a time when tension between America and Iran has increased. If this tension continues for a long time, inflation may increase further.
Prices of daily essential goods, fuel and power increased
- Inflation of daily essential goods (primary articles) increased from 6.36% to 9.17%.
- Inflation of food items (food index) has increased from 1.85% to 1.98%.
- The wholesale inflation rate of fuel and power has increased from 1.05% to 24.71%.
- Wholesale inflation rate of manufacturing products increased from 3.39% to 4.62%.
Wholesale inflation in financial year 2025-26
| month | wholesale expensive |
| april | 0.85% |
| May | 0.39% |
| june | -0.13% |
| july | -0.58% |
| august | 0.52% |
| september | 0.13% |
| october | -1.21% |
| november | -0.32% |
| December | 0.83% |
| January | 1.81% |
| February | 2.13% |
| march | 3.88% |
4 parts of wholesale inflation
Primary article, whose weightage is 22.62%. The weightage of Fuel and Power is 13.15% and the weightage of Manufactured Products is the highest at 64.23%. The primary article also has four parts.
- Food articles like grains, wheat, vegetables
- Oil seeds are included in non-food articles.
- Minerals
- crude petroleum
Retail inflation increased to 3.48% in April
Retail inflation in April has increased to 3.48%. Earlier in March it was 3.40%. The biggest reason for increase in inflation is the increase in prices of food items. Food inflation increased to 4.20% in April. This figure was 3.87% in March.
Impact of Wholesale Price Index (WPI) on the 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 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 22.62% and fuel and power 13.15%. 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.
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