Wholesale inflation record high in November
According to government data, annual wholesale price-based inflation in India had accelerated to a record high in November 2021.
- The wholesale price inflation, a proxy figure for producers’ prices, accelerated by increases in manufacturing and food prices. Thus, it raised concerns of rising inflationary pressure.
- Annual wholesale price-based inflation increased to 14.23% in November. It was highest since April 2005.
- In October 2021, this figure was 12.54%.
- The Wholesale inflation has remained in double-digits for the eighth consecutive month, while headline retail inflation was around 5%, or within the target of 2% to 6% by central bank.
Consumer price-based inflation
The Consumer price-based inflation increased to 4.91% in November 2021. In October, it was 4.48%.
Wholesale fuel and power prices
Wholesale fuel and power prices increased to 39.81% in November 2021 as compared to 37.18% in October 2021. Inflationary pressures are increasing for households despite there is a softening in global prices of crude oil and government has cut in fuel tax.
Wholesale food price
Wholesale food prices increased to 6.70% in November 2021 while it was 3.06% in October.
Wholesale Price Index (WPI)
Wholesale Price Index is defined as the price of a basket of wholesale goods. It focuses on price of goods traded between corporations. It does not measure the goods purchased by consumers. Primary objective of WPI is to monitor price drifts which reflect demand and supply in construction, manufacturing and industry. The index helps in assessing macroeconomic and microeconomic conditions of an economy.
Wholesale Price Index (WPI) India
In India, Inflation rates are measured in the basis of WPI. It is released by the Ministry of Commerce and Industry.
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