India’s Wholesale Price Index (WPI) inflation has jumped to a new high of 15.1% in April on the back of soaring commodity, food and fuel prices, posing a major challenge for authorities already battling surging prices fuelled by the Ukraine war and breakdown in global supply chains due to the Covid lockdown in China.
In fact, this is the 13th consecutive month of double-digit WPI inflation and the April number is the highest in a shade over nine years in the current series, which began in April 2012. It is the highest in 31 years going by the 1981-82 series when it posted 16. 3% in September 1991. The latest numbers come close on the heels of retail inflation rising.
The high rate of inflation in April 2022 was mainly due to the rise in prices of mineral oils, basic metals, crude petroleum and natural gas, food articles, non-food articles, food products and chemicals & chemical products, compared to a year ago, according to an official statement. The rate of inflation based on the WPI Food Index increased marginally from 8.7% in March to 8.9% in April.
Globally, inflation has emerged as a major risk to economic recovery and has hit household budgets, prompting central banks across the world to aggressively increase interest rates. The WPI data showed India’s fuel and power inflation at 38.7% in April. Not only that, wheat prices rose an annual 10.7%, vegetables by 23.2%, manufactured products by 10.9%, highlighting the price pressures across the board.
