WPI inflation increases at 1.26% in April due to rise in food, energy prices

WPI inflation in April: Wholesale inflation rose for the second consecutive month in April to 1.26 per cent due to a rise in food articles as well as fuel and power. In March it was 0.53 per cent, and in April last year it was 0.79 per cent. 

“The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 1.26 per cent (Provisional) for the month of April, 2024 (over April, 2023). Positive rate of inflation in April, 2024 is primarily due to increase in prices of food articles, electricity, crude petroleum & natural gas, manufacture of food products, other manufacturing etc,” said the Ministry of Commerce & Industry on Tuesday. 

The month over month change for April, 2024 stood at 0.79  per cent as compared to March, 2024, it said

The WPI Food Index, consisting of food articles from the primary group that includes cereals, paddy, wheat, pulses, vegetables, potato, onion, fruits, milk, eggs, meat and fish, and food products from manufactured products group have increased from 180.1 in March to 183.6 in April. The rate of inflation based on WPI Food Index increased from 4.65 per cent in March to 5.52 per cent  in April.

The Primary Articles index increased by 1.97 per cent to 186.7 in April from 183.1 from the month of March. Prices of crude petroleum & natural gas (3.56 per cent) and food articles (2.67 per cent) increased in April as compared to March. Prices of non-food articles (-1.19 per cent) and minerals (-1.55 per cent) declined in April.

The Fuel and Power group index declined by 0.26 per cent to 154.8 in April from 155.2 in March. Prices of mineral oils (0.06 per cent) increased in April, while prices of electricity (-1.20 per cent) declined.

The index for Manufactured Products group also increased by 0.50 per cent to 140.8 in April from 140.1 in March. “Out of the 22 NIC two-digit groups for manufactured products, 15 groups witnessed an increase in prices, five groups have witnessed a decrease in prices and two groups witnessed no change in prices. Some of the important groups that showed month-over-month increase in prices are basic metals; other manufacturing; textiles; food products; chemical & chemical products, etc. Some of the groups that witnessed a decrease in prices are other non-metallic mineral products; paper & paper products; motor vehicles, trailers & semi-trailers; furniture; and leather & related products in April,” the ministry said. 

RETAIL INFLATION IN APRIL

India's annual retail inflation rate for April showed a slight decrease to 4.83 per cent from 4.85 per cent in March, marking an 11-month low. This figure was approximately in alignment with market estimates of 4.8 per cent. The reduction is attributed partially to lower fuel rates, while food prices remained high.

This is the eighth consecutive month where inflation has stayed within the Reserve Bank of India's acceptable range of 2 percentage points within 4 per cent, suggesting that the key rate will likely remain unaltered.