Wholesale inflation was at 10.5% in April 2021, the highest it has ever been in the current series, which starts from April 2011.
The following chart plots monthly inflation over the last nine years, starting from April 2012.
This is the first time that wholesale inflation has entered double digits. The highest level before April was between January and March 2013, when the inflation ranged between 8-8.6%.
So why has there been such a massive jump in wholesale inflation? The price of cooking gas, petrol and diesel has gone up by 20.3%, 42.4% and 33.8%, respectively, from a year earlier.
There are two reasons for this price rise. First, the price of the Indian basket of crude oil averaged at $19.9 per barrel in April 2020. It averaged at $63.40 per barrel in April 2021, a jump of 219%.
