-Livemint.com
Why is retail inflation then touching new heights? It is mainly because CPI and WPI are two different sets of indicators with varied compositions
While the retail inflation as measured by the Consumer Price Index (CPI) touched a 16 month high at 4.62% in October, the wholesale price inflation measured by the Wholesale Price Index (WPI) is at the verge of entering the negative territory. The gap between the two is currently the widest in two years.
In October, wholesale price inflation dropped to 0.16% as compared to 0.33% a month ago, data released by the commerce and industry ministry showed on Thursday. Most analysts expect WPI inflation to decline further in coming months, weighed by a base effect.
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