Wholesale inflation at 15-month high
In May, wholesale inflation has risen to a 15-month high. According to the data released today, on June 14, wholesale inflation has risen to 2.61% in May. In February 2023, the wholesale inflation rate was 3.85%.
At the same time, inflation was 1.26% in April 2024, which was the highest level in 13 months. A month before this, in March 2024, it was 0.53%. Wholesale inflation was 0.20% in February. On the other hand, retail inflation saw a decline on Wednesday.
Food inflation increased by 1.88% in May
- Food inflation increased from 5.52% to 7.40% as compared to April.
- The inflation rate of daily essential goods increased from 5.01% to 7.20%.
The wholesale inflation rate of fuel and power came down from 1.38% to 1.35%. The wholesale inflation rate of manufacturing products increased from -0.42% to 0.78%.
Retail inflation declined in May
Earlier, yesterday, on June 12, the retail inflation figures for May were released. According to this, retail inflation stood at 4.75% in May. This is the lowest level in 12 months. At the same time, a month ago, i.e. in April, retail inflation had come down to 4.83%.
Effect of WPI on the common man
Prolonged rise in wholesale inflation has a bad effect on most productive sectors. If the wholesale price remains high for a very long time, then the manufacturers put its burden on the consumers. The government can control WPI only through tax.
For example, in the event of a sharp increase in crude oil, the government had cut 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.
