Wholesale price inflation hit 15.08% in April 2022, the highest since September 1991, official data showed on May 17.
- The wholesale price index (WPI) grew at double digit rates for the 13th month in a row.
- Data released May 12 showed inflation based on consumer price index scaling an 8-year high of 7.79% in April, on a broad-based rise in price pressures across food, fuel and core segments.
- Data released by the industry department on May 17 showed vegetable inflation picked up in April to 23.24 per cent, leading to a food inflation of 8.35 per cent, even as the rise in wheat price softened.
WPI Vs CPI
- The wholesale price index (WPI) based inflation rate is called the wholesale inflation rate. The consumer price index (CPI) based inflation is the retail inflation rate.
- The CPI-based inflation data is compiled by the Ministry of Statistics and Programme Implementation (or MoSPI) and the WPI-based inflation data is put together by the Department for Promotion of Industry and Internal Trade (or DPIIT).
- The WPI is dominated by the prices of manufactured goods (64.23%) while the CPI is dominated by the prices of food articles (45.86%).
- A key difference is that the WPI does not take into account the change in prices of services — say a haircut or a banking transaction. But CPI does. If services such as transport, education, recreation and amusement, personal care etc. get significantly costlier, then retail inflation will rise but there will be no impact on wholesale price inflation.
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