Team Adda247 and BankersAdda are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is WPI hits 11 years high of 10.49% in April.
WPI hits 11 years high of 10.49% in April
Commerce Ministry has released data, which showed Wholesale Price Index-based inflation at 10.49% in April 2021. India’s WPI has just recorded to almost its 11 years high on the sharp rise of basic metals, fuel, and power. Fuel and manufacturing items’ inflation rose to 20.94% and 9.01% respectively, which is compared to April month which was 10.25% and 7.34% in the March month.
The primary food articles’ WPI inflation rose to 4.9% in April, which is driven by fruits, non-vegetarian protein items such as tea. April 2020’s low base of wholesale inflation has (-1.57) zoomed the commodities led the rise in inflation last month. “The WPI inflation has given a negative surprise for yet another month, hardening to a sharper than ‘anticipated series-high 10.5% in April 2021,” said Chief economist at rating agency ICRA.
Retail inflation in April eased to 4.29% which is a three-month low, but experts considering it as temporary. Experts thought that the April moderation in retail inflation is temporary as there is a limit to how low perishables can go, fuel prices have started to rise, and non-perishables remain elevated.
Economists expecting a further rise in WPI, with an expectation in rising in commodity prices. Wholesale inflation in paddy, cereals, wheat, onion, and pulses plunged in April which showing that the government is able to keep inflation under its control for essential food commodities despite supply disruptions during the pandemic. The initiative of the government to build a buffer stock of essential food items by procuring through Price Stabilisation Fund, all are yielding results.