- Latest set of data released reveal that wholesale price inflation (WPI) has risen to a 5-month high driven by increase in food inflation, mainly vegetables, poultry and milk, power costs and fuel inflation.
- Going head, the risk to WPI comes from deficient monsoons and the terror crisis in Iraq.
- Controlling the increasing prices is of utmost importance as it may dampen the easing of retail inflation and also to revive industrial production.
- The CII recommended a multi-pronged approach for tackling inflation, including the implementation of a model APMC Act.
- Finance Minister Arun Jaitley has attributed the rise in WPI to hoarding of food stocks by traders in anticipation of poor monsoons and directed States to introduce strong measures against hoarders to check speculation.
- He promised to ease supply side bottlenecks and also said that the instability of the rupee was a result of the terror crisis in Iraq.
- Read at: http://www.thehindu.com/todays-paper/tp-business/hoarding-also-responsible-says-jaitley/article6121362.ece
- http://www.thehindu.com/todays-paper/tp-business/inflation-hits-5month-high-in-may/article6121357.ece
Exams Perspective:
- Inflation
- Food Inflation
- WPI
- APMC
- Hoarding
- Monsoon