Source: Business Standard, May 15, 2018
New Delhi: Pressure on inflation, retail as well as wholesale, is mounting. While the widely-tracked consumer price index (CPI)-based inflation rate rose to a three-month high of 4.58 per cent, its wholesale price index (WPI) counterpart increased to a four-month high of 3.18 per cent in April.
This might justify the hawkish stance of the monetary policy committee (MPC).
The CPI inflation rate had stood at 4.28 per cent, and the WPI rate at 2.47 per cent in March.The widely-tracked core CPI inflation (non-food, non-oil) rate rose to a 44-month high of 5.9 per cent against 5.4 per cent in this period.
On the other hand, core WPI inflation remained flat at 3.6 per cent.
Though the government did not fully pass on the rise in crude oil prices to consumers owing to the Karnataka elections, fuel prices drove up inflation.
The government waited for the Karnataka polls to be over before announcing hikes in petrol and diesel prices by 17 and 21 paise a litre, respectively. So the impact would be seen much more in May than in April.Even then, the inflation rate in petrol zoomed to 9.58 per cent in April from 2.55 per cent in the previous month, while diesel saw prices rising at 13.01 per cent from 6.12 per cent in this period.
Source: Ministry of statistics and programme implementation (Mospi) for CPI and Commerce ministry for WPI
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