Lok Sabha Question No. 740 (UNSTARRED), answered on 2022-12-12
Subject: Wholesale and Retail Inflation Rate
Ministry: FINANCE
Asked by: V. Kalanidhi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 740

TO BE ANSWERED ON 12.12.2022

## WHOLESALE AND RETAIL INFLATION RATE

## 740. DR. KALANIDHI VEERASWAMY:

Will the Minister of FINANCE be pleased to state:

- (a) the details of retail and wholesale inflation rate in the country at present;
- (b) whether  these  inflation  rates  have  been  hovering  high  during  the  last  few years in the Country and if so, the details thereof and the reasons therefor;
- (c) whether the Government is aware that the Indian economy is gripped by and unprecedented  inflation  resulting  from  the  rise  in  the  prices  of  petroleum products, food and manufactured articles and if so, the details thereof and the reaction of the Government thereto; and
- (d) whether the Government has formulated any strategy to check the price rise and to contain inflation rate and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a):  The Retail inflation rate based on Consumer Price Index-Combined (CPI-C) was 6.77 per cent  and Wholesale price Inflation based on the Wholesale Price Index (WPI) was 8.39 per cent in October 2022.
- (b) to (d): Details of retail and wholesale price inflation rates for last few years and the current year are given in Annexure

Soaring commodity prices at the international level and pandemic-induced supplydemand imbalances have caused a rise in the inflation rate worldwide including in India.  The  Russia-Ukraine conflict  has  exacerbated the inflationary  pressures  in crude oil, gas, metals and edible oils (sunflower). Further, the onset of heat waves and  uneven  rainfall  in  the  later  part  of  the  monsoon  season  has  led  to  crop damage and a rise in vegetable prices.

The price situation of major essential commodities is monitored by the Government on a regular basis and corrective action is taken from time to time. Several  supply-side  measures  have  been  taken  by  the  Government  to  address inflation.  These  include inter  alia ,  reduction  in  excise  duty  by  Rs.  8  per  litre  on petrol and Rs. 6 per litre on diesel on May 21, 2022, prohibition of export of wheat products  under  HS  Code  1101,  imposition  of  export  duty  on  rice,  reduction  in import duties and cess on pulses, rationalization of tariffs and imposition of stock limits  on  edible  oils  and  oil  seeds,  maintenance  of  buffer  stock  for  onion  and pulses, the inclusion of soya meal as an essential commodity in the schedule of the Essential Commodities Act, 1955 and imposition of a stock limit on soya meal.

ANNEXURE STATEMENT  REFERRED  TO  PART  (b)  IN  REPLY  TO  THE  LOK  SABHA UNSTARRED QUESTION NO. 740 RAISED BY DR. KALANIDHI VEERASWAMY FOR 12 th  DECEMBER 2022

Retail  Inflation  based  on  CPI-C  (Base  2012)  and  Wholesale  Price  Inflation based on Wholesale Price Index (Base 2011-12) (Y-o-Y) (%)

| Year/Month   | Retail Inflation Rate (%)   | Wholesale Inflation Rate (%)   |
|--------------|-----------------------------|--------------------------------|
| 2017-18      | 3.59                        | 2.96                           |
| 2018-19      | 3.41                        | 4.26                           |
| 2019-20      | 4.77                        | 1.68                           |
| 2020-21      | 6.16                        | 1.29                           |
| 2021-22      | 5.51                        | 13.00                          |
| 2022-23      |                             |                                |
| April        | 7.79                        | 15.38                          |
| May          | 7.04                        | 16.63                          |
| June         | 7.01                        | 16.23                          |
| July         | 6.71                        | 14.07                          |
| August       | 7.00                        | 12.48                          |
| September    | 7.41                        | 10.70*                         |
| October      | 6.77*                       | 8.39*                          |

Source: NSO, MoSPI and DPIIT Note: *Figures are provisional

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