Wholesale Inflation Declined: There has been a decline in wholesale inflation, inflation in food items has decreased, know the details…

Wholesale Inflation Declined: The wholesale inflation rate has come down to 1.89 percent in the month of November. Earlier in October, the wholesale inflation rate was at 2.36 percent, whereas in the month of September, the wholesale inflation rate was at 1.84 percent. Inflation rate has come down due to reduction in prices of vegetables and food items.

Reduction in prices of food items and primary commodities
The inflation rate of daily essential commodities came down from 8.09 percent to 5.49 percent.
Inflation rate of food items increased from 11.59 percent to 8.92 percent.
The wholesale inflation rate of fuel and electricity decreased from -5.79 percent to -5.83 percent.
The wholesale inflation rate of manufacturing products increased from 1.50 percent to 2.00 percent.

Impact of wholesale inflation on common man
When wholesale inflation remains high for a long time, it has a negative impact on the most productive sectors. If wholesale prices remain high for a long time, producers pass the burden on to consumers. The government can control WPI only through taxes.
For example, in the event of a sharp rise in crude oil, the government had reduced excise duty on fuel. However, the government can reduce the tax cut only within a limit.
Factory related goods like metals, chemicals, plastics, rubber have more weight in WPI. Wholesale inflation has three parts, primary commodity which has a weight of 22.62 percent. The weight of fuel and electricity is 13.15 percent. The weight of manufactured products is highest at 64.23 percent.
Primary goods also have four parts: Food items like grains, wheat, vegetables, oilseeds come in non-food items, Minerals, Crude petroleum, etc.
Wholesale Inflation:How is it measured?
There are two types of inflation in India. One is retail and the other is wholesale inflation. The retail inflation rate is based on the prices paid by ordinary consumers.
It is also called Consumer Price Index (CPI). Whereas, Wholesale Price Index (WPI) means the price charged by one trader from another trader in the wholesale market.