Team News Riveting
New Delhi, May 15
India’s Wholesale Price Index (WPI)-based inflation turned negative in April and was recorded at -0.92 per cent 1.34 per cent in the previous month.
This is the lowest WPI inflation has been recorded since August 2020, when it fell to -0.58%
The WPI food inflation came down to 0.17 per cent in April from 2.32 per cent in March. While the WPI edible oils inflation stood at -25.91 per cent in April, WPI primary articles inflation stood at 1.60 per cent during the same period.
WPI inflation for fuel and power and manufactured products stood at 0.93 per cent and -2.42 per cent in April respectively, as per the Commerce Ministry data. The Commerce Ministry attributed the fall in WPI inflation to “fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical and chemical products, rubber and rubber products and paper and paper products”.
Meanwhile, retail inflation in India dropped to an 18-month-low of 4.7 per cent in April due to falling prices of vegetables, oils and fats, and came closer to the Reserve Bank of India’s (RBI) target of 4 per cent. The consumer price index (CPI) based inflation remained within the RBI’s comfort zone for the second straight month below the 6 per cent mark. Retail inflation stood at 5.66 per cent in March 2023.
The government has asked the RBI to ensure that retail inflation remains at 4 per cent with a 2 per cent margin on either side. During its recent monetary policy committee (MPC) meeting in April, the central bank paused interest rate hike and pegged retail inflation at 5.2 per cent in the current fiscal year.
The annual rate of inflation based on all India Wholesale Price Index (WPI) number is (-) 0.92 per cent (Provisional) for the month of April, 2023 (over April, 2022) against 1.34 per cent recorded in March, 2023. Decline in the rate of inflation in April, 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper and paper products
