Wholesale Inflation Hits Record High: How To Tame Skyrocketing Prices? | News Today https://www.youtube.com/watch?v=yrQHWqapb2Y The wholesale price-based inflation accelerated to a record high of 12.94 per cent in May, on rising prices of crude oil and manufactured goods. Low base effect also contributed to the spike in WPI inflation in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent.
This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation.
In April 2021, WPI inflation hit double-digit at 10.49 per cent. "The annual rate of inflation, based on monthly WPI, was 12.94 per cent for the month of May 2021 (over May 2020) as compared to (-) 3.37 per cent in May 2020.
West Bangal finance minister Amit Mishra says that govt is believing ht eold Say's law of markets ( Say’s Law is frequently understood as supply creates its own demand, as if the simple act of supplying some good or service on the market was sufficient to call forth demand for that product. It is certainly true that producers can undertake expenses, such as advertising, to persuade people to purchase a good they have already chosen to supply, but that is not the same thing as saying that an act of supply necessarily creates demand for the good in question. This understanding of the law is obviously nonsensical as numerous business and product failures can attest to. If Say’s Law were true in this colloquial sense, then we could all get very rich just by producing whatever we wanted. https://fee.org/articles/understanding-says-law-of-markets/) theres nobody in the govt who understand macro-economics..
Former Finance Minister P Chidambaram On Record Wholesale Inflation https://www.youtube.com/watch?v=Npp1JLGf-k8 low base effect.. fuel & Powere rise is 37 % which has a cascading effect on all prices.. States are being asked to reduce taxes.. But since a larger portion of the taxes is imposed b the centre, the centre need to show the way by reducing which will then put pressure on the states to also follow suit.
to the question that reduce mobility of people during lockdown, the fuel hike will have limited impact? Chimdamabaram says the reduction is not uniform throughgout the country.
The entire burden is falling on the RBI whch is forced to keep its accomodative stance. Centre should contribute to the effort from the fiscal side.