Wholesale prices rose on account of rising raw material prices and transport costs
Inflation has soared in India. After retail inflation, wholesale inflation has also risen sharply. Inflation was 15.8 per cent in April. Inflation has risen to 15 per cent. It has gone up to 88 per cent. This is considered to be the highest inflation rate in the last nine years.
Inflation, as measured by the Wholesale Price Index (WPI), had touched 14.55 per cent in March. Earlier, the rate had risen to 13.11 per cent from 13.43 per cent in February. Wholesale price inflation stood at 10.74 per cent in April last year. Meanwhile, for the 13th consecutive month since April 2021, the wholesale price inflation has remained in double digits. Inflation was mainly due to an increase in prices of mineral oil, crude petroleum and natural gas, foodstuffs, basic metals, non-food items, chemicals and chemical products and food products. The Ministry of Commerce and Industry has stated in this regard. Also, prices of vegetables, wheat, fruits and potatoes have gone up sharply over the previous year. Food inflation stood at 12.34 per cent in May.
In May, vegetables became dearer by 56.36 per cent, wheat by 10.55 per cent and eggs, meat and fish by 7.78 per cent. Among manufactured products and oilseeds, it was 10.11 per cent and 7.8 per cent, respectively. Inflation in crude oil and natural gas was 79.50 per cent. Retail inflation stood at 7.4 per cent in May. Last week, the central bank raised its inflation forecast for 2022-23 by 100 basis points to 6.7 per cent.
In its annual report, the RBI said that the rise in prices of raw materials and transport costs has led to higher inflation. Prices of all these items have risen significantly compared to May last year.
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