April Wholesale Price Index (WPI)
The Wholesale Price Index (WPI) based inflation rate surged to 15.1 percent in the month of April due to the rise in prices of fruits, vegetables, manufacturing, milk, power, and fuel according to data that was released by the Ministry of Commerce and Industry.
What was the WPI rate in March 2022?
In the month of March, the WPI rate stood at 14.55 percent.
What is the inflation rate at the retail level?
According to data that was released, the inflation rate at the retail level stood at 7.79 per cent for the month of April which is the highest recorded since May 2014.
How did the RBI react to this increase in the inflation rate in April?
Due to this sharp rise in the inflation rate in April, the Monetary Policy Committee of the Reserve Bank of India met more than a month early than their scheduled meeting to be held in June and a 40-basis-point hike in the repo rate was announced on the 4th May 2022.
Why did the WPI-based inflation rate increase in April?
The inflation rate rose in April due to an increase in sequential price pressures. The WPI commodities index rose 2.1 percent month-on-month, while for power and fuel it was 2.8 percent higher in the month of April as compared to March. The heatwave that occurred this summer has increased the price of perishables items like vegetables, fruits, and milk along with the price of tea and all of these caused an increase in the inflation rate of primary food. Also, price rises of basic metals, mineral oils, natural gas, crude petroleum, non-food articles, food articles, chemicals, food products, chemical products, etc also caused an increase in the inflation rate.
What was the inflation rate of manufactured products in April?
In the month of April, the inflation rate for manufactured products shot up to 10.85 percent mainly due to chemicals, basic metals, chemical products, machinery, textiles, and electrical and other equipment.
What was the fuel inflation rate?
The fuel inflation rate stood at 38.66 percent due to high inflation in major categories of diesel, petrol, aviation fuel, and LPG. In April, natural gas and crude petroleum inflation was recorded at 69.07 percent.
What was the core-WPI inflation for the non-food and non-fuel components in April?
In April, the core-WPI inflation for the non-fuel and non-food components rose to 11.1 percent which is a four-month high. The inflation rate in food articles stood at 8.35 percent due to price rises of wheat, vegetables, potato, and fruits.
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Month: Current Affairs - May, 2022
Category: Economy & Banking Current Affairs