InvestorQ : While CPI inflation is falling, WPI inflation is still quite high? What does that mean?
Archita Jajjoo made post

While CPI inflation is falling, WPI inflation is still quite high? What does that mean?

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Niti Shenoi answered.
1 month ago
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For the month of September 2021, the retail CPI inflation tapered lower to 4.35% but the wholesale price inflation (WPI) or producer inflation still stayed in double digits. This is the sixth consecutive month of double-digit WPI inflation. This is relevant because WPI inflation is a barometer of producer inflation and it could be indicative that further supply chain driven inflation in India could be on the cards.

WPI inflation in Sep-21 at 10.66% was 73 bps lower than 11.39% in Aug-21. However, the big worry for WPI inflation remains crude oil due to its strong downstream effects on other commodity prices. Interestingly, wholesale fuel and power inflation touched 24.81% in September; nearly twice that of retail fuel and power inflation.

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