The WPI Falls To In April To -0.92%
On Monday, the Ministry of Commerce and Industry released the WPI inflation rate. After many years the inflation rate has dropped to – 0.92%. Read this article to know more about it.
The country witnessed the fall of the Wholesale Price Index (WPI) inflation rate in the past 11 months. The WPI inflation rate for April 2023 was (-) 0.92. In March, the inflation rate was at 1.34%. It is the lowest rate since June 2020 for the country.
The low WPI inflation rate has been because of the softening of the commodities pricing at the global level. The impact of global-level pricing was seen in the price of the commodities such as fuel, food, and other related input costs or the producers.
After April 2020, when the inflation rate was at (-) 1.81%, this has been recorded as the lowest inflation rate announced.
The negative value of the WPI inflation rate represents that we are currently experiencing deflation. Deflation is the reverse of inflation. Here, the value of the inflation rate falls. Resulting in a decrease in the wholesale price of certain commodities.
It is said that if the deflation continues the price of the commodities will also fall. Thus, it will reduce the production cost of the manufacturers.
As per the Ministry of Commerce and Industry, fall in the price of the following are responsible for the fall in the inflation rate:
- Basic metal
- Food products
- Mineral oils
- Textiles
- Non-food articles
- Chemicals and chemical products
- Rubber and plastic products
- Paper and paper products.
Following are some of the inflation rates in products and goods that have experienced a decrease in their rates:
- The inflation rate of food articles decreased to 3.54% in April 2023 from 5.48% in March 2023. Food articles such as cereals, fruits, milk, eggs, meat, and fish have seen a decline in prices compared to March.
- The rate of inflation in vegetables was (-) 1.50.
- Commodities such as wheat experienced a decreased WPI inflation rate. The rate declined to 7.27%.
- The WPI inflation rate of manufactured goods decreased from 0.77 in March 2023 to (-) 2.42% in April 2023.
The retail inflation rate witnessed an 18-month low rate at 4.70% in April 2023. It is said that the WPI inflation rate directly affects the retail inflation rate. Thus, a decrease in the WPI inflation will pull down the retail inflation rate as well.
Experts suggest that if the monthly WPI inflation rate continues to fall it will directly impact the full-year WPI. It is expected that the average WPI for the year would be around 1 – 2%.
Summary of the article:
On Monday, May 15, 2023, the Ministry of Commerce and Industry put out the Wholesale Price Index (WPI) inflation rate for April. The WPI inflation rate was (-) 0.92. It was recorded as the 11-month lowest rate. This was the result of a fall in the price of commodities at the global level. Other details in the article.
