As demand is recovering, industry is likely to pass on the higher costs to consumers and this may affect retail price inflation, experts said
Fuel and power prices rose 37.18% in October year-on-year compared with 24.81% in September, while manufactured product prices rose 12.04% compared with 11.41% in previous month
Led by a sharp rise in commodity prices, especially crude oil, and supply-side issues, most economies across the globe have been battling rising inflation over the past few months
A 10 per cent increase in crude oil prices, according to Nomura's estimates, may raise India's headline inflation by around 30 basis points (bps), add around 0.3 per cent of GDP to CAD
Hardening global commodity prices spill over to domestic market
WPI inflation rose marginally even as retail inflation measured by Consumer Price Index slipped to a four-month low of 5.30 per cent as prices of manufactured products spiked
The wholesale price index (WPI) inflation is at a three-month low but remained in double digits in this fiscal year so far
However, WPI inflation remained in double digits for the third consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 per cent, in July 2020
Forecasts for gross domestic product were raised to a 9.2% expansion in the fiscal year ending March 2022, from the previous 9%, while the gross value added outlook edged down slightly to 9%.
India's annual wholesale price inflation eased to 12.07% in June from the previous month's record of 12.94%, despite a spike in costs of fuel and manufactured goods
Ignoring it for long could increase longer-term costs
The wholesale price-based inflation accelerated to a record high of 12.94 per cent in May, on rising prices of crude oil and manufactured goods
A mix of short- and long-term policies to contain price rise in these two commodities while keeping an eye on the interest of the cultivator could be the balm India is looking for
Diesel retail prices are back to more than Rs 80 a litre in the national capital throughout this month and remain on an upward trajectory
The wholesale price-based inflation shot up to an all-time high of 10.49% in April, on rising prices of crude oil and manufactured items
Hopes for policy rate reduction in near term dim even as economic uncertainty looms large amid the second Covid-19 wave
The wholesale price-based inflation shot up to over 8-year high of 7.39 per cent in March on rising crude oil and metal prices
Wholesale inflation rose to 4.17% in February as against 2.03% in the previous month
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Most experts say the numbers are worrisome and can dent the economic recovery going ahead. Here's how economists at leading brokerages and research houses have interpreted the numbers