May 15, 2026
Report
Report
Share
- In April 2026, WPI-based inflation (at 8.3%) decisively surpassed a benign CPI, which printed 3.5%, hit by the West Asia conflict. The upside risk to inflation from the conflict is yet to materially reflect in CPI
- WPI and CPI cover different markets. WPI captures the movement of prices in wholesale markets and reflects the economy’s production structure, while CPI measures what consumers pay for goods and services
- Rising WPI inflation means higher input costs for industry. This puts pressure on the margins of companies. Faced with significant rise in input costs, companies will start passing the same to end-consumers (WPI to CPI transmission) to avoid excessive pressure margins
Subscribe to our reports
