Retail inflation surpassed RBI’s comfort level (6%) for the second consecutive month, while wholesale inflation remained in double digits for the eleventh consecutive month
Retail inflation surpassed RBI’s comfort level (6%) for the second consecutive month, while wholesale inflation remained in double digits for the eleventh consecutive month
retail inflation is Accelerated to 6.07% in February 2022, surpassing RBI’s comfort level (6%) for the second consecutive month. Wholesale inflation continues Double digits for the eleventh consecutive month, Data showed that higher prices of some vegetables, diesel, petrol, crude oil, air turbine fuel, chemicals (caustic soda, ammonia), raw silk, raw cotton, and roses (flowers) led to an increase in wholesale inflation in February. The rise in retail inflation is mainly attributable to increased cost of certain vegetables, mustard oil, vanaspati, airfare, chicken, telephone charges, petrol, kerosene and LPG.
above tolerance level
The chart shows wholesale and retail inflation between January 2019 and February 2022. In February 2022, retail inflation rose to an eight-month high of 6.07% due to higher food and fuel inflation. Wholesale inflation rose marginally to 13.11%, and remained in double digits for the eleventh consecutive month. Wholesale inflation remains high mainly on account of imported items like crude oil.
Chart seems incomplete? Click To remove amp mode
Wholesale Price Inflation – Commodity Wise
The wholesale price inflation (WPI) of all commodities in February 2022 is depicted on the vertical axis. In inflation calculations, the weights of those items are shown on the horizontal axis. Cabbage, for example, accelerated to 199.5% in wholesale inflation and carries a weighting of 0.12% in the final inflation calculation.
Onion WPI declined by 26.4 per cent in February. However, unlike January, the WPI (14.8%) rose in February. The Wholesale Price Index for brinjal, cauliflower, and tomato rose by over 75%, 50% and 15%, respectively. These five vegetables have the highest weight in bulk calculations. Bitter gourd and radish have gained over 95% in the wholesale price index but have a lower weight in the calculations.
The WPI of crude oil, diesel and petrol rose by at least 50%. All these carry a considerable load in the calculations. The WPI of chemicals such as ammonia liquid and caustic soda has also risen by over 80%. The Wholesale Price Index for raw cotton, raw silk and rose flower rose by over 50%, 75% and 80% respectively.
Retail Price Inflation – Commodity Wise
The retail inflation (CPI) of all commodities for February 2022 is shown on the vertical axis. In inflation calculations, the weights of those items are shown on the horizontal axis. For example, cauliflower rose to 60% in retail inflation and carries a weighting of 0.24% in the final inflation calculation.
In February, the CPI of onion declined by 19.5%. However, unlike January, the CPI of potato rose (3.1%) in February. The CPI of Cabbage, Brinjal and Tomato increased by more than 50%, 35% and 20% respectively. These five vegetables have the highest weight in the retail count. Parwal and Carrot’s CPI increased by over 45% but carries less weight in the calculations.
CPI of mustard oil, refined oil and chicken rose by 29%, 13.5% and 15%, respectively, and kerosene by over 55%. The CPI of petrol and mobile charges rose by about 10%.
Source: Mospi