No. PR- 058
June 14, 2021
High fuel and power prices stoke WPI inflation to 12.9% in May 2021: PHD Chamber
The spike in WPI inflation at 12.94% in May 2021 from 10.49% in April 2021 is majorly due to escalating prices of fuel and power, which have stoked the overall WPI inflation, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, in a press statement issued here today
High input costs are severely impacting the price cost margins of the businesses in the difficult time of pandemic coronavirus, said Sanjay Aggarwal
WPI inflation of the manufactured products has increased to 10.83% in May 2021 from 9.01% in April 2021. The increase in costs of raw materials is affecting the MSMEs which are already struggling because of pandemic impact and squeezed working capital, said Sanjay Aggarwal.
High commodity prices are posing a serious challenge to the small businesses to operate in the difficult pandemic times, which needs to be addressed immediately through the adequate reforms in the supply chains of high price commodities, said Sanjay Aggarwal.
We suggest to do away with the custom duties on the imports of primary raw materials for industrial use for at least current FY 2022 and impose export duties on various primary commodities showing huge price increases, exceeding 50% over the last FY 2021, said Sanjay Aggarwal.
WPI inflation of fuel and power has increased to 37.61% in May 2021 from 20.94% in April 2021, which is escalating the input costs of the industry and its competitiveness in the domestic and international markets, said Sanjay Aggarwal.
At this juncture, we urge the Government to consider petroleum products in the ambit of GST to rationalize the prices and to contain the rising inflation, said Sanjay Aggarwal.
PHD Chamber of Commerce and Industry