Nagpur: According to data released by the commerce ministry on May 17, India’s inflation based on the Wholesale Price Index (WPI) has hit record highs of 15.08 percent, up from 14.55 percent in March.
As there has been a shocking smack of inflation going on around the world, India also faced this turmoil along these lines. As there has been a sharp increase in inflation, the Reserve Bank of India’s Monetary Policy Committee was forced to convene and recently announced a 40 basis point hike in the repo rate on May 4.
Inflation jumped higher in April across all the boards of many countries because of an increase in significant price pressures. Commodities index of the WPI (Wholesale price index) rose 2.1 %, meanwhile the index for the fuel and power rose and touched the mark 2.8 % in April.
Talking about the manufactured products which accounts 64.23 right now. Let’s shift our attention to the food index which also was yes git hiked 3.4 percent.
Aditi Nayar, ICRA’s chief economist stated, “The heatwave led to a spike in prices of perishables such as fruits, vegetables and milk, which along with a spike in tea prices pushed up primary food inflation.”
Furthermore she added, “ With the WPI inflation remaining solidly in double-digits, the probability of a repo hike in the June 2022 review of monetary policy has risen further. We expect a 40 basis point hike in June 2022 followed by a 35 basis point rise in August 2022, amidst a terminal rate of 5.5 percent to be reached by mid 2023.”
