Jammu, May 19 -- Sharp rise in wholesale prices has started biting consumers

By Dr. Gyan Pathak

Though the April retail inflation based on Consumer Price Index (CPI) rose only a little to 3.48 per cent from the March inflation 3.40, and year on year food inflation based on Consumer Food Price Index to 4.20 per cent from 3.87, which is still within the tolerable limit of 2-6 per cent, situation is likely to change for the worse within weeks. Wholesale inflation is rising sharply, and it will soon go beyond the ability and capacity of the Union government to prevent passing it to the consumers, which it has been doing in the last three months, chiefly on account of the elections in states.

The wholesale inflation for all commodities in F...