Wholesale inflation: India's wholesale inflation in India, based on the Wholesale Price Index (WPI), surged to 1.26 per cent in April on an annual basis, marking a notable increase from the 0.53 per cent recorded in March and reaching a 13-month high, data from the Commerce Ministry on Tuesday showed.
Wholesale inflation saw a second consecutive month of increase in April, driven by higher prices of food articles, particularly vegetables, alongside a rise in fuel and power costs.
Positive rate of inflation due to increase in prices of food articles
The wholesale price index (WPI) based inflation was 0.79 per cent in April last year. In March 2024, it was 0.53 per cent. "Positive rate of inflation in April 2024 is primarily due to increase in prices of food articles, electricity, crude petroleum and natural gas, manufacture of food products, other manufacturing etc," the Ministry of Commerce & Industry said in a statement on Tuesday.
Inflation in food articles rose to 7.74 pc
According to the data, inflation in food articles increased to 7.74 per cent in April from 6.88 per cent in March. Specifically, inflation in vegetables rose to 23.60 per cent in April, up from 19.52 per cent in the previous month.
In the fuel and power category, inflation stood at 1.38 per cent in April, a significant increase from (-)0.77 per cent in March.
The April WPI rise contrasts with the retail inflation data for the same month. The Reserve Bank of India (RBI) primarily considers retail inflation in its monetary policy decisions. Retail inflation decreased to an 11-month low of 4.83 per cent in April.
In its recent announcement, the RBI maintained the interest rate unchanged for the seventh consecutive time, citing vigilance towards potential upward risks to food inflation.
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