InvestorQ : How do you see the WPI inflation that was announced on 16 March? It has also come in lower than last month. What does that indicate?
Deepa Salunkhe made post

How do you see the WPI inflation that was announced on 16 March? It has also come in lower than last month. What does that indicate?

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Juvina Maggie answered.
2 years ago
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The monthly Wholesale Price Index (WPI inflation), came in lower at 2.26% for February 2020. This is lower than the 3.1% reported in Jan-20. Like in the case of retail CPI inflation, the food index fell sharply from 10.12% in January to 7.31% in February. However, the food basket has a much lower weighted in the case of WPI and it is more of manufacturing that impacts the WPI inflation. Normally, in India, CPI inflation and WPI inflation tend to diverge because they represent the consumer angle and the producer angle respectively. However, in the last few months the WPI inflation has been much lower than CPI inflation because manufacturing inflation has stayed low due to weak demand.

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