In April, Wholesale price-based inflation in the country hiked to 10.49 per cent in the last 11 years. This comes after commodity price and fuel prices surged which had already been indicating inflationary pressures.
Amidst nationwide lockdown in April 2020, WPI reached -1.57 per cent. This contributed to the low-base effect in wholesale commodity. The wholesale price index (WPI) indicates the wholesale price inflation to have surged since December, last year.
In March, inflation rose to eight year high to 7.39 per cent. Also, the number has seen the highest surge since April, 2010.
As per the commerce and industry ministry, inflation in the food sector rose to 4.92 per cent in April. Whereas the price of the manufacturing industry jumped by 9.01 per cent on a yearly basis. Due to higher fuel and diesel prices Inflation in fuel and power stand at 20.94 per cent.
Experts’ say on Wholesale Price Inflation
Meanwhile, Chief economist at CARE Ratings, Madan Sabnavis, said, “Manufacturing sector recorded high inflationary pressures due to rise in the global metal price. And strong pricing power of manufacturers.
Also, the consumer price index (CPI) observed moderating inflations in April by 4.29 per cent. The data released showed a 5.52 per cent four months high from March.
This came as the rate of inflation strengthened for fruits, eggs and meat. Price fpr the same accelerated by 27.43 per cent and 10.88 per cent. Where inflation for non-edible items stood at 11.8 per cent in March the inflation went up to 15.6 per cent in the month of April.
TOI quoted the statement of Sunil Kumar Sinha the principal economist at India Ratings & Research. He stated, “Since global prices of items such as minerals, edible oil, crude oil, coal, fertilisers, plastic, basic metals, electronic items, among others, are mostly a pass-through into domestic prices, a surge in global commodity prices has put significant pressure on the headline wholesale inflation. In fact, the contribution of these items to the headline wholesale inflation increased to 72.6 per cent during February-April 2021 from negative 34.4 per cent during September-November 2020.”