Jobaaj Stories
The Wholesale prices in India usually face median inflation of 12% annually.
However, According to recent data released by the Commerce Ministry, the inflation increase in wholesale prices reached a 30 year high this time.
The input costs have risen fueled by high commodity prices and supply constraints.
Wholesale prices rose up to 14.2% in November from a year earlier. This is the highest level since 1991 when the wholesale inflation rate reached up to 14.3%
Factory-gate inflation has stayed in double digits this FY as companies are obliged to pay more for raw materials amid a rally in global commodity prices and a supply crunch.
Prices of food articles rose by 4.9%, fuel and power prices jumped 39.8%, and manufactured products saw an increase of 11.9%.
It can be implied of all this data that Elevated prices at the wholesale level may be passed onto retail consumers.
Recent data also suggest that retail inflation has also inched close to 5% amid wholesale price inflation.
As the world prepares to let go of the pandemic era, the inflation rate is expected to slow down marginally.
