Wholesale food inflation likely to dip in coming months, says report

The gap between WPI and CPI food inflation was the highest in the past decade, says Credit Suisse report

After rising at a hefty pace in recent times, the prices at which farmers sell their produce in wholesale mandis could grow slowly in the coming months if past trends are an indication, an analysis presented in a Credit Suisse report has said.

This could spell trouble for the farm sector as wholesale food prices have remained tepid for a considerable period in the past couple of years. Research has also shown that a slowdown in the rate of rise in wholesale food prices also leads to a slowdown in rural wages, which could possibly add to worries.

Wholesale price index (WPI)