April’s WPI inflation falls to 3-year low

This is the lowest level of wholesale price index (WPI) since June 2020, when inflation was at (-) 1.81 per cent.

Wholesale prices in India fell for the first time in almost three years in April, as softening global commodity prices brought down food, fuel, and other input costs for producers. WPI inflation has been on a declining trend for the past 11 months and came in at (-) 0.92 per cent in April. This is the lowest level of wholesale price index (WPI) since June 2020, when inflation was at (-) 1.81 per cent.

ADVERTISEMENT

WPI inflation was at 1.34 per cent in March. Barclays in a research note said it expects WPI inflation to continue to moderate as easing commodity prices drive input costs lower. “We think the moderation in retail inflation (which we expect to continue) suggests a pause is likely in the next Monetary Policy Committee (MPC) meeting in August.

Also read: Sachin Pilot compares Rajasthan with Karnataka, asks his govt to fulfil promise on 'corruption'

Easing wholesale price pressures indicate that input price inflation is also easing,” Barclays said. Last month, the RBI paused its interest rate hike, holding the benchmark rate at 6.50 per cent. It projected retail inflation to average 5.2 per cent in current fiscal year. The next three-day meeting of RBI’s monetary policy committee is scheduled on June 6-8.

—0.92%
India’s WPI inflation in April

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!