Spike in WPI inflation due to skyrocketing commodity prices: PHD Chamber
High commodity prices are posing a serious challenge to the businesses to operate in the difficult pandemic times
New Delhi: The spike in WPI inflation at 10.49% in April 2021 from 7.39% in March 2021 is majorly due to skyrocketing commodity prices, which have escalated the overall WPI inflation in the double digits and have severely impacted the price cost margins of the businesses in the difficult pandemic time of coronavirus, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.
WPI inflation of the manufactured products has increased to 9.01% in April 2021 from 7.34% in March 2021. The increase in costs of raw materials is affecting the MSMEs which are already struggling because of pandemic impact and squeezed working capital, said Sanjay Aggarwal.
WPI inflation of the food articles has increased to 4.92% in April 2021 from 3.24% in the month of March 2021. We expect that the prices of food articles will soften and food inflation will be in the benign conditions in the coming weeks with improved supply chains, said Sanjay Aggarwal.
WPI inflation of fuel and power has increased to 20.94% in April 2021 from 10.25% in March 2021 which is significantly increasing the input costs of the industry and its competitiveness in the domestic and international markets, said Sanjay Aggarwal.
At this juncture, we urge the government to consider petroleum products in the ambit of GST to rationalize the prices and to contain the rising inflation, said Sanjay Aggarwal
High commodity prices are posing a serious challenge to the businesses to operate in the difficult pandemic times, which needs to be addressed immediately through the adequate reforms in the supply chains of high commodity prices, said Sanjay Aggarwal.