Wholesale Price Inflation (WPI) has notched another month of 24 percent year-on-year increase in March 2022. It has now been seven straight months of WPI recording in excess of 20 percent, with 9MFY22 growth at 22 percent.
This is in sharp contrast to the WPI in the same period of FY21, which averaged a little over 6 percent.
Just two months after the WPI first hit double digit in February 2021, the retail price index entered double digit, and has largely stayed in double digit for most of FY22 thus far. The lag effect of WPI on retail prices is well-documented.
The last Bull Run for WPI lasted for over a year and a half and it took a global pandemic for brakes to be applied. It was towards the end of the bull rally, that the CPI peaked at 14 percent.