Sudden spike in WPI inflation is majorly due to a rise in the food inflation which will come down with supply of kharif crops hitting the market in the coming months, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry.
WPI inflation has increased to 3.5 percent in the month of July 2016 as against 1.6 percent in June 2016.
Prices of pulses and vegetables will come down as an incremental sowing process suggests ample pulses production in the coming kharif season, said Dr. Gupta.
Sowing process of pulses has been observed significantly higher at more than 30 percent in 2016 as compared with 2015.
Good monsoon will also enhance the supply of vegetables and increased supply will help in bringing down the prices, said Dr. Gupta.
However, going ahead, we need to focus on building supply chain infrastructure majorly the storage of vegetables and other perishables to remove the hurdles in the supply chain, he said.