India’s wholesale inflation soared to a three-decade high in April as high commodity prices and supply-chain disruptions pushed up input costs for producers. The annual rate of inflation was 15.08% (Provisional) for the month of April 2022 (Y-o-Y) as compared to 10.74% in April 2021. The rate of inflation based on the WPI Food Index increased marginally from 8.71% in March 2022 to 8.88% in April 2022.
Why does this happen?
- The high rate of inflation in April 2022 was primarily due to a rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year.
- Fuel prices, a big component of the increase, were up 38.66 % on the year versus 34.52 % in March.
- The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade released the index numbers of wholesale prices in India (Base Year: 2011-12) for the month of April 2022 (Provisional) and for the month of February 2022 (Final).