In the month of April, wholesale inflation has come down from 2.05% to 0.85%. This is the lowest level of inflation in 13 months. Earlier in March 2024, inflation was at 0.53%. At the same time, the government has revised the inflation rate of February 2025. It has been increased from 2.38% to 2.45%. Inflation has come down due to the reduction in the prices of daily essential goods and food items. The Ministry of Commerce and Industry released these figures today i.e. on 14 May. Daily essential goods, food items became cheaper Impact of Wholesale Price Index (WPI) on the common man Due to the long-term increase in wholesale inflation, most of the productive sectors are adversely affected. If the wholesale price remains high for a very long time, then the producers put its burden on the consumers. The government can control WPI only through tax. Like in the case of sharp increase in crude oil, the government had cut the excise duty on fuel. However, the government can reduce tax deduction only within a limit. Factory related goods like metal, chemical, plastic, rubber have more weightage in WPI. The three parts of wholesale inflation are primary articles, which have a weightage of 22.62%. Fuel and power have a weightage of 13.15% and manufactured products have the highest weightage of 64.23%. Primary articles also have four parts. How is inflation measured? There are two types of inflation in India. One is retail and the other is wholesale inflation. Retail inflation rate is based on the prices given by the common customers. It is also called Consumer Price Index (CPI). On the other hand, Wholesale Price Index (WPI) means the prices that a trader charges from another trader in the wholesale market. Different items are included to measure inflation. For example, the share of manufactured products in wholesale inflation is 63.75%, primary articles like food 22.62% and fuel and power 13.15%. Whereas, in retail inflation, food and products have a share of 45.86%, housing 10.07% and other items including fuel also have a share. —————– Also read this news related to inflation… Retail inflation came down to 3.16% in April: This is the lowest in about 6 years, inflation decreased due to reduction in the prices of food items. Retail inflation in India has come down to 3.16% in April. This is the lowest level of inflation in 69 months. Inflation was 3.15% in July 2019. Retail inflation has come down due to continuous softening in the prices of food items. Earlier, retail inflation was 3.34% in the month of March. This was the lowest level of inflation in 67 months. Retail inflation figures have been released today, i.e., Tuesday, May 13. Read the full news…
