InvestorQ : Why is WPI inflation up even though CPI inflation is lower and what to make of it?
Khushi Patel made post

Why is WPI inflation up even though CPI inflation is lower and what to make of it?

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Dhwani Mehta answered.
2 days ago
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WPI inflation or wholesale price inflation was sharply up at 11.39% for the month of August. This is contrary to the trend of CPI or retail inflation what has been consistently falling over the last 4 months. The rising WPI inflation clearly is a pointer towards the rising input costs being a pressure point for Indian industry. That is what is being signalled by the rising factory inflation in the month of August.

Interestingly, this is the fifth month in a row that wholesale inflation has been in double digits. That was largely led by fuel spiking by 26.1% during the month, which pushed up inflation despite the tapering of wholesale food inflation. It must be remembered that fuel has a huge secondary impact as it impacts all products. IN fact, Core WPI inflation, which excludes food and oil, touched all-time high level of 11.1%.

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