There has been a tremendous jump in the country’s wholesale inflation (WPI) in the month of April. It has increased from 3.88% to 8.30%, which is considered a big shock. The biggest reason for this rise is the huge increase in the prices of fuel, electricity and crude oil. The rise in crude oil prices in the international market and tensions in West Asia have made this situation more serious. Experts believe that if this trend continues, it will have a direct impact on the pockets of common people in the coming months.
Highest jump in fuel and electricity
The fuel and power sector made the biggest contribution to the wholesale inflation figures. Inflation in this category reached 24.71%, which was only 1.05% in March. This shows that costs in the energy sector are increasing rapidly, which may impact transport and production costs in the future.
Record increase in crude oil
A huge jump has also been recorded in the prices of crude petroleum. In April it recorded inflation of 88.06%, whereas in March it was 51.5%. Experts say that the oil supply has been affected due to the crisis in West Asia and obstacles in the Strait of Hormuz. India imports a large part of its requirement, hence it directly impacts the domestic market.
Stability in foods, but expensive non-foods
Inflation in food items remained relatively stable and reached 1.98%, which was 1.90% in March. But inflation in non-food items increased to 12.18%. There is also a possibility of increase in industrial costs due to this.
Government’s step and further challenge
The government has so far kept the prices of petrol, diesel and domestic LPG stable so that the common people can get relief. However, the prices of commercial LPG cylinders have been increased. Economists believe that if global oil prices do not stabilize, pressure on both wholesale and retail inflation may increase in the coming months.
What will be the impact on the common man?
The increase in wholesale inflation will have a direct impact on the retail market in the future. Due to this, transport, grocery, gas and many essential items can become expensive. That is, even though relief is visible now, it is certain that the pressure on the pockets of the general public will increase in the coming days.
