Why is the inflation duality between retail and wholesale?, Watch Full Report | ABP News

Retail inflation, based on the Consumer Price Index or CPI released on Monday, showed a reduction to 4.83 percent in April compared to 4.85 percent in March. On the other hand, wholesale inflation rose to a 13-month high of 1.26 percent in April, fuelled by rising prices of food articles, especially vegetables. So, what explains the dichotomy between the two inflation indicators? According to experts, the opposite directions of the CPI and the WPI are due to the different consumption baskets included in the two inflation indices. The WPI has a large component of commodities, including imported ones, and any upturn in global commodity prices reflects on it immediately. On the other hand, the CPI is a broader index that includes a wide range of domestic commodities and allocates 25 percent of its weightage to services.