In the light of the prevailing food inflation, there is a strong reason to analyse the real difference between the wholesale price index (WPI) and the consumer price index (CPI) percentages. The CPI is much above the WPI. This means that retailers' profit margins are adding to food inflation at the consumer level. Unfortunately, there is no law - and there cannot be such a law - to control the percentage of profit that businesses can earn. A repo rate cut will also not help reduce the gap.
Anand Wadadekar Pune
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