WPI Inflation in August: Wholesale inflation has given a big blow. In the month of August, the country’s Wholesale Price Index (WPI) has increased to 11.39 percent. According to government data, the increase in wholesale inflation has been registered due to the rise in fuel and electricity prices. Along with this, the rise in the prices of manufactured products is also responsible for this impact of inflation.
What is Wholesale Inflation (What is WPI-Wholesale Price Index)
Wholesale Price Index or Wholesale Price Index refers to the prices that one trader in the wholesale market charges from another trader.
These prices are linked to deals made in bulk. In comparison, the Consumer Price Index (CPI) or Consumer Price Index is based on the prices offered by common customers. The rate of inflation based on CPI is also called retail inflation or retail inflation.
Wholesale inflation rises to 11.39% (provisional) for the month of August 2021: Government of India pic.twitter.com/QevP4CxMJL
— ANI (@ANI) September 14, 2021
Why and how much did wholesale inflation rise in August
According to the data released by the government, the increase in wholesale inflation has been due to the rise in fuel prices. During this period, the inflation of fuel and power has increased from 26.02 percent to 26.09 percent.
At the same time, the inflation of manufactured products has increased from 11.20 percent to 11.39 percent. However, food inflation in the wholesale market has come down from 4.46 per cent to 3.34 per cent.
What will be the effect on the common man
Experts say that due to increase in wholesale inflation, the pressure on the common man and companies increases. In such a situation, the RBI can increase the interest rates instead of reducing it. In such a situation, the interest expense of the companies will increase. Hence, there will be pressure on the profits of the company. Also, companies can postpone their expansion plans.