WPI hits 11-year high of 10.49% in April as metals, fuel prices zoom


India’s wholesale worth inflation hardened to an virtually 11-year high in April on the again of a pointy rise in prices of fundamental metals, fuel and energy, indicating retail inflation might agency with a lag in response to this value push stress.

Data launched by the commerce ministry on Monday confirmed wholesale worth index (WPI) primarily based inflation at 10.49% final month, up from 7.39% in March.

Inflation in fuel and manufacturing gadgets rose to twenty.94% and 9.01%, respectively, in April in contrast with 10.25% and seven.34% final month.

The WPI inflation in main meals articles rose to a six-month high of 4.9% in April, pushed by fruits, non-vegetarian protein gadgets and gadgets such as tea.

The low base of wholesale inflation in April 2020 (-1.57%) magnified the commodities-led rise in inflation final month.

“The WPI inflation delivered a negative surprise for yet another month, hardening to a sharper-than-anticipated series-high 10.5% in April 2021,” stated Aditi Nayar, chief economist at score company . She attributed an element of wholesale worth improve to a weakening rupee.

Retail inflation in April eased to a three-month low of 4.29%, however consultants think about it short-term.

“We see the April moderation in retail inflation as temporary, as there is limit to how low perishables can go, fuel prices have started to rise, and non-perishables remain elevated,” stated Rahul Bajoria, chief India economist at British funding financial institution Barclays. He expects CPI to rise to five.4% in May.

Economists count on an extra rise in WPI as properly going forward as a result of of an anticipated rise in commodity prices. Wholesale inflation in paddy, cereals, wheat, onion and pulses fell in April.

“This shows that the government has been able to keep inflation under control for essential food commodities despite supply disruptions during the pandemic. The government’s initiatives to build a buffer stock of essential food items by procurement through Price Stabilisation Fund, are yielding results,” stated a authorities official.



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