Wholesale Inflation In India 2022, April jumps to 15.08%, the highest in 17 years.
Wholesale Inflation In India 2022, The surge in inflation is mainly due to rising prices of crude oil and natural gas, food, and non-metallic and chemical products such as wheat, fruits and vegetables, the Ministry of Trade and Industry said Tuesday.
Wholesale Inflation In India 2022, Data released by the Department of Commerce showed that the Wholesale Price Index (WPI)-based inflation rate hit an all-time high of 15.1% in April as vegetable, fruit, milk, manufacturing, fuel and electricity prices rose Industry on Tuesday.
WPI Footprint The highest in the 2011-12 series, Wholesale Price Index (WPI) annual inflation (producer-level inflation) has been rising steadily, maintaining double digits for the 13th straight month.
According to data released last week, retail inflation rose to 7.79% in April, the highest in eight years, and expectations for another RBI hike rose 40bps in June.
Due to the heatwave this summer, the prices of perishable foods such as fruits, vegetables, and milk soared, along with the price of tea, and the price of primary foodstuffs also rose.
Industrial inflation in April was led by non-metals, chemicals and chemical products, textiles, machinery equipment, and electrical equipment, rising to 10.85%. Fuel inflation rose to 38.66% driven by high inflation in the main categories of gasoline, diesel, LPG and aviation turbine fuel. In April, crude oil and natural gas inflation was 69.07%.
Core WPI inflation (non-food, non-fuel component) soared to a four-month high of 11.1% in April as producers had to restrain price pressure. Food inflation was 8.35% as prices for vegetables (23.24%), wheat (10.70%), fruit (10.89%) and potatoes (19.84%) rose sharply from the previous period.
“The high inflation rate in April 2022 is mainly due to higher prices compared to that month for petroleum products, non-metals, crude oil and natural gas, food, non-food products, foodstuffs, chemicals and chemical products. Last year,” the govt. said. According to the report, the government began collecting data for the new WPI series of 2017-18, the report said.
Aditi Nayar, ICRA Limited, said: “WPI inflation could remain at uncomfortably high levels, easing below 15% in May 2022, as commodity prices adjust slightly as China demand outlook offsets INR declines.” The ICRA said in its June 2022 monetary policy review that the possibility of a repo hike is more likely.
also read: Retail inflation in India in April was 7.79%, the highest in eight years.
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