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Wholesale Inflation
Why is it in the news?
- As per official data released, wholesale prices based inflation surged to an eight-month high of 2.59 per cent in December.
- It was 0.58 per cent in November .
More in the news
- Major cause behind the Rise: Sharp rise in prices of food articles like onion and potato.
- Food and Non-food articles: The rate of price rise for food articles rose to 13.12 per cent during December as against 11 per cent a month earlier, while for non-food articles it rose nearly four-fold to 7.72 per cent from 1.93 per cent in November.
- Rate cut unlikely: The unexpected jump in inflation diminished the chances of the RBI cutting interest rate at its next monetary policy review due in early February.
- Wholesale Price Index (WPI):
(1) WPI index reflects average price changes of goods that are bought and sold in the wholesale market.
(2) Wholesale price indexes report monthly to show the average price changes of goods sold in bulk, and they are a group of the indicators that follow growth in the economy.
(3) WPI includes all the manufactured products and CPI includes food and services part.
Source
The Hindu.