New Delhia few moments ago
- copy link
Wholesale inflation (WPI) has increased to 9.87% in June. Earlier in May it was at 9.68%. Inflation in June is the highest in 44 months. It reached 10.70% in September 2022. The Commerce Ministry has released wholesale inflation figures today i.e. on July 14.
Due to increase in inflation, daily essential items and food items like grains and vegetables have also become expensive. Actually, there is tension between America and Iran since the month of February. If conditions do not normalize, inflation may increase further.
Prices of daily essential goods increased
- Inflation of daily essential goods (primary articles) increased from 4.99% to 7.00%.
- Inflation of food items (food index) has increased from 4.49% to 6.14%.
- The wholesale inflation rate of fuel and power has decreased from 30.33% to 27.41%.
- The wholesale inflation rate of manufacturing products remained unchanged at 7.48%.
This is how wholesale inflation will increase in 2026
| month | wholesale inflation |
| January | 1.81% |
| February | 2.13% |
| march | 3.88% |
| april | 8.26% |
| May | 9.68% |
| june | 9.87% |
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, vegetables
- Oil seeds are included in non-food articles.
- Minerals
- crude petroleum
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.
—————————————-
Read this news also…
Inflation increased for the sixth consecutive month in June: reached 4.38%, crossed RBI’s mid target; Potato and ginger become expensive, gold and silver become cheap
Retail inflation has increased for the sixth consecutive month due to the rise in prices of food items including potatoes and ginger. It has reached 4.38% in June. In January it was 2.74%. Whereas a month ago in May it was 3.93%. That is, this is the sixth consecutive month when inflation has increased.
Source link
[ad_3]
