Inflation at record level after 24 years: Wholesale inflation crossed 15% for the first time since 1998; Petrol and diesel set fire in prices

Rising inflation has made life difficult for people. The wholesale inflation has remained in double digits for the 13th consecutive month due to an increase in the prices of food, fuel, and electricity. The Wholesale Price Index-based (WPI) inflation rate touched 15.08% in April. The wholesale inflation has crossed 15% for the first time since December 1998. It was at 15.32% in December 1998.

Earlier it was at 14.55% in March 2022, while it was at 13.11% in February. The wholesale inflation has remained in double digits since April 2021. According to experts, inflation is increasing due to rising food and fuel prices.

Fuel and energy increased inflation

The inflation rate of food articles has been 8.35% in April, which was 8.06% in March 2022. Inflation in April for crude petroleum and natural gas stood at 69.07%. At the same time, the inflation rate of fuel and power increased to 38.66%, which was 34.52% in March 2022. Inflation in manufacturing products stood at 10.85% in April, from 10.71% in March 2022.

Prices of vegetables, wheat, fruits, and potatoes rose sharply in April on a year-on-year basis, leading to food inflation at 8.35%. In the case of oil and electricity, the inflation rate was 38.66%, while the wholesale inflation rate for manufactured products was 10.85 and for oilseeds was 16.10%.

Retail inflation at 8-year peak

Earlier, retail inflation has reached an 8-year peak due to rising oil prices from food items. According to government data, the Consumer Price Index (CPI) based retail inflation rose to 7.79% in April. Inflation in May 2014 was 8.32%.

How is inflation measured?

There are two types of inflation in India. One is retail, that is, retail and the other is wholesale inflation. The retail inflation rate is based on the prices offered by ordinary customers. It is also called Consumer Price Index (CPI). Whereas, the Wholesale Price Index (WPI) refers to the prices that one trader in the wholesale market charges another trader. These prices are linked to deals done in bulk.

Different items are included to measure both types of inflation. For example, the share of manufactured products in wholesale inflation is 63.75%, primary articles like food 20.02%, and fuel and power 14.23%. At the same time, the share of food and products in retail inflation is 45.86%, housing 10.07%, clothing 6.53%, and other items including fuel also contribute.

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