Wholesale Price Inflation (WPI) has notched another month of 24 percentyear-on-year increase in March 2022. It has now been seven straight monthsof 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, whichaveraged a little over 6 percent.
Just two months after the WPI first hit double digit in February 2021, theretail price index entered double digit, and has largely stayed in doubledigit for most of FY22 thus far. The lag effect of WPI on retail prices iswell-documented.
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The last Bull Run for WPI lasted for over a year and a half and it took aglobal pandemic for brakes to be applied. It was towards the end of thebull rally, that the CPI peaked at 14 percent.
