Inflation in the country has once again gained momentum. The wholesale inflation rate (WPI) has more than doubled to 8.30 percent in the month of April. This is considered to be the highest level in the last 42 months. Earlier in March, wholesale inflation was recorded at 3.88 percent. The Ministry of Commerce and Industry released these figures on Thursday.
According to the data, this sharp jump in wholesale inflation has been seen mainly due to the increase in prices of daily essential commodities and fuel. With crude oil prices crossing $100 per barrel in the global market, pressure on prices has increased, which is having a direct impact on the domestic market.
This level is the highest since October 2022, when wholesale inflation reached 8.39 percent. Experts believe that the continuously increasing costs are affecting production and supply chain, due to which the prices at the wholesale level remain high.
Meanwhile, a slight increase has also been recorded in retail inflation (CPI). Retail inflation increased to 3.48 percent in April, whereas it was 3.40 percent in March. Although the increase is modest, the continuing upward trend has raised economic concerns.
The biggest reason for increasing inflation is said to be the rise in prices of food items. Food inflation increased to 4.20 percent in April, which was 3.87 percent in March. The rising prices of food items have put additional burden on the pockets of common consumers.
Economists say that fluctuations in oil prices in the international market and supply-related problems may affect inflation in the coming months. However, the government is claiming that the situation is being monitored and necessary steps are being taken.
