New Delhi: Data released by the Union Ministry of Commerce & Industry revealed that the wholesale inflation measured by the wholesale price index (WPI) in the country eased to a 21-month low. The wholesale inflation is at 5.85% in November. It is lowest since February 2021.
The WPI remained below the double-digit mark for the second straight month. Prior to that, the WPI came above the double-digit mark for 18 straight months from April 2021 to September 2022. The fall in prices of food articles, basic metals, textiles, chemicals and chemical products, and paper and paper products is the reason for the decline in the rate of inflation.
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Meanwhile, India’s retail inflation rate based on Consumer Price Index declined to 5.88% in November from 6.77% during the previous month. This is the first time in 11 months that the retail inflation print has come within the RBI’s tolerance band of 4 ( +/- 2)%.
Wholesale Price Index (WPI) is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index (CPI) is another price index that calculates price changes of goods and services that a consumer has to pay in the retail market. The monetary police of Reserve Bank of India is made after reviewing the CPI.
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