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178 Economic Survey 2021-22

Figure 13: CPI Rural and Urban Inflation

9
8 7 Rural Urban
Inflation rate (yoy) (per cent) 6 5 4 3

1 2
0
Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21

Source: NSO, MoSPI

Figure 14: ‘Food & Beverages’ Inflation in Rural and Urban

12 Food and beverages-Rural Food and beverages-Urban
Inflation rate (yoy) (per cent) 8 6 4
10

0 2
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

Source: NSO, MoSPI

Trends in Wholesale Price Index based Inflation

5.21 WPI inflation during the current financial year, in contrast to the trends observed in CPI-C
inflation, has shown an increasing trend, and remained high (Figure 15). WPI inflation has
been benign during 2020-21 and 2019-20 while being moderate or low in the preceding years.
Therefore, part of the high inflation in WPI being witnessed currently could be because of a low
base in the previous year.

5.22 While WPI inflation has been higher in the current financial year compared to the previous
year in all the three major groups, it was above 20 per cent in ‘fuel and power’ group reflecting
the high international petroleum prices as mentioned earlier (Table 3). Within the primary
articles group, ‘crude petroleum & natural gas’ sub-group has witnessed very high inflation
and stood at 55.7 per cent in December 2021. Similarly, minerals has witnessed high inflation
throughout the year. Impact of rising international prices in WPI manufacturing was clearly
visible, especially in manufacture of basic metals (Box 4). Manufacture of basic metals saw