“With the summer season likely to add to upward food price momentum, our estimates show that WPI could peak in May before moderating thereafter,” Business Today quoted Barclays as saying.
Labourers unload onions for sorting at Mundera wholesale market in Allahabad. File pic/AFP
The wholesale price-based inflation shot up to 11-year high of 10.49 per cent in April, on rising prices of food items, crude oil and manufactured goods. Barclays, in its report titled, said that the rise would continue. “With the summer season likely to add to upward food price momentum, our estimates show that WPI could peak in May before moderating thereafter,” Business Today quoted Barclays as saying.
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This is the fourth straight month of uptick seen in the wholesale price index (WPI)-based inflation. In March, 2021, it was 7.39 per cent. Inflation in food articles in April was 4.92 per cent. This was led by 10.88 per cent inflation in ‘egg, meat and fish’ basket during April, 10.74 per cent in pulses and 27.43 per cent in fruits. In vegetables, the rate of price rise was (-) 9.03 per cent, against (-) 5.19 per cent in the previous month. Inflation in this bracket was 3.24 per cent in March 2021.
Inflation in the fuel and power basket was 20.94 per cent in April, while in manufactured products it was 9.01 per cent. ICRA Chief Economist Aditi Nayar said, “We expect the headline WPI inflation to rise further to 13-13.5 per cent in the current month before commencing a downtrend.”
10.49%
The WPI inflation in April
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