Page 209 - economic_survey_2021-2022

Prices and Inflation 183

Figure 19: Retail and wholesale inflation rate of Petrol
100 WPI Petrol CPI petrol for vehicle
Inflation rate (yoy) (per cent) 60 0
80

40

20

-20
-40
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 and OEA, DPIIT
Note: Item level index for CPI petrol for vehicle was not available for March-May 2020.

Table 20: Retail and wholesale inflation rate of Diesel

100 WPI HSD CPI diesel for vehicle
Inflation Rate (yoy) (per cent) -20 0
80
60
40
20

-40
-60
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 and OEA, DPIIT
Note: Item level index for CPI diesel for vehicle was not available for March-May 2020.

5.32 Another reason for divergence is the lagging demand pick up. While production has
gradually picked up in 2021-22 to reach the pre-pandemic levels, consumption demand is yet
to normalise fully. With weak pass on, the divergence between WPI and CPI is increasing but is
expected to wane gradually with the weakening of the base effect.