BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL GOSSIP CORNER RELIGION SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS BIG MEMSAAB 2017 BUDGET 2017 FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES Mahakal Ke Darshan
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
N
W
T
logo
Breaking News

Expensive petrol and diesel impact, wholesale price inflation flips 14-month high

Thursday - June 14, 2018 4:45 pm , Category : WTN SPECIAL

Wholesale price Inflation to deteriorate your home budget

JUNE 14 (WTN) - As it was feared that the increasing in the prices of vegetables along with petrol and diesel would increase the inflation and this exactly happened. Wholesale price based inflation rose to 14-month high of 4.43 percent in May. Let you know that wholesale price index (WPI) based inflation was 3.18 percent in April this year and 2.26 percent in May last year.

According to official data, the inflation in food items has increased from 0.87 percent in April to 1.60 percent in the month of May. Vegetables prices also increased to 2.51 percent during this period. It was negative 0.89 percent in April. In the fuel and power category, inflation also increased to 11.22 percent in May compared to 7.85 percent in the month of April. During this period, the price of potato increased from 67.94 per cent in April to 81.93 per cent in May.

Fruit prices increased 15.40 percent during May, while pulses fell 21.13 percent. WPI-based inflation of March was also increased to 2.74 percent from the initial forecast of 2.47 percent. Earlier, retail inflation rose to four-month high of 4.87 percent in May this year.

As you know, it’s the Reserve Bank of India’s work to control over inflation. The Reserve Bank decides to change interest rates after observing inflation. If inflation is high, then the Reserve Bank hikes rates. This directs the bank to increase rates of loans; due to increasing in the rates of loans, people use less because of the money being expensive. Reduced liquidity in the market decreases inflation. For the past few months, inflation has been above the Reserve Bank's target that is why RBI has recently increased the interest rates by 0.25%
Leave a Comment
* Name
* Email (will not be published)
*
* - Required fields