Between April 2019 and February 2021, wholesale inflation had stayed below the retail inflation for each month. But since March 2021, this trend has reversed, as producers are unable to completely pass on the cost pressure to consumers. What happens when cost pressures will be passed on to the consumer? The inflation may scale higher peaks.
For thirteen months in a row, wholesale price index or WPI-based inflation has stayed in double digits, galloping to a scorching 15.1% in April. The WPI inflation number, which measures the average change in prices of goods and services at the wholesale level and tells us about the price pressure being faced by producers, is now at 13% for 2021-22, up from just 1.3% in 2020-21.What’s striking is that the April WPI inflation is nearly double the
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