Wholesale inflation saw a consecutive increase for the second month in April, reaching 1.26 per cent due to surges in food article prices, notably vegetables, alongside fuel and power costs. This contrasts with a 0.79 per cent WPI inflation rate in April last year and 0.53 per cent in March 2024.
The Ministry of Commerce & Industry attributed this rise to various factors including food articles, electricity, crude petroleum, natural gas and manufacturing of food products. Food article inflation escalated to 7.74 per cent in April from 6.88 per cent in March, with vegetable prices soaring to 23.60 per cent from the previous month's 19.52 per cent.
In the fuel and power segment, inflation climbed to 1.38 per cent in April compared to (-)0.77 per cent in March. Despite this, retail inflation, which the RBI primarily considers for policy formulation, decreased to a 11-month low of 4.83 per cent in April. The RBI, maintaining interest rates unchanged for the seventh consecutive time last month, remains watchful of potential upward risks in food inflation.
