Wrong. Wholesale prices are more volatile as they are driven by global factors. However, wholesalers do not always pass the burden to retailers. In a CNBC report, senior journalist Latha Venkatesh explains that this is due to the contracts in place and also the expectation that price rise is temporary. This way, they would not be hurting the customer, and therefore the demand. However, if the WPI soars for a prolonged period of time, manufacturers and wholesalers will eventually pass it on to consumers. Therefore, rising WPI impacts consumers, but there is a delayed impact – if the prices of manufactured goods increase for a prolonged period of time.