What is the meaning of WPI inflation shooting up to 10.49%?
Answer
Answer
On Monday, the wholesale price index or WPI inflation was announced and it came in at an 8-year high of 10.49%. This is in sharp contrast to the falling CPI inflation for Apr-21. The sharp surge in wholesale inflation was led by fuel and manufactured product prices.
It is roughly indicative of the pressure on costs that most manufacturers are facing with inputs getting more expensive across industries due to supply chain constraints. In terms of the break-up of WPI inflation for Apr-21, food inflation was at 4.92%, manufacturing inflation at 9.01% and fuel inflation at a huge 21%.