India Inflation: good news has come for the common man. Wholesale inflation has come down to minus 0.13% in the month of June, this was the lowest level of 20 months.

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Earlier in October 2023, it was at minus 0.56%. In May it was at 0.39% and in April at 0.85%.

Food items became cheaper

Inflation in daily essential goods has come down from minus 2.02% to minus 3.38%.

Effect on common man

Prolonged rise in wholesale inflation has a bad effect on the productive sector. If the wholesale price remains high for a very long time, then the producers put its burden on the consumers, which affects the common man. The government can control WPI only through tax, like in the case of sharp increase in crude oil, the government had reduced the excise duty on fuel. Let us tell you that the government can reduce the tax cut only within a limit. Factory related goods like metal, chemical, plastic, rubber have more weightage in WPI.

Three parts of wholesale inflation

The weightage of primary article is 22.62%.

The weightage of fuel and power is 13.15%.

The weightage of manufactured product is 64.23%.

How is inflation measured?

There are two types of inflation in India, retail and wholesale inflation. Retail inflation rate is based on the prices given by common customers. It is also called Consumer Price Index (CPI). On the other hand, the price of wholesale price index is charged by one trader from another trader in the wholesale market.

To measure inflation, different items are included from which data is derived. Manufactured products account for 63.75% in wholesale inflation, 22.62% in primary articles like food and 13.15% in fuel and power.

Retail inflation accounts for 45.86% of food and products, 10.07% in housing and other items including fuel.

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