The latest Wholesale Price Index (WPI) figures for April 2024, released by the Department for Promotion of Industry and Internal Trade (DPIIT) on 14 May 2024, indicate a notable positive inflation rate of 1.26 per cent compared to April 2023.
The annual rate of inflation, calculated over the corresponding month of the previous year, stands at 1.26 per cent. This increase is primarily attributed to rises in prices across various sectors, including food articles, electricity, crude petroleum & natural gas, and the manufacturing of food products among others.
Over the last three months, the Wholesale Price Index (WPI) has undergone notable shifts across various commodity groups. In April 2024, the index for all commodities surged to 153.0, marking a substantial rise from the level of 151.2 observed in February 2024. This increase correlates with an inflation rate of 1.26 per cent, reflecting upward price pressures across the board.
Particularly noteworthy is the performance of primary articles, which experienced a significant upturn. With an index of 186.7, primary articles showcased a remarkable inflation rate of 5.01 per cent, underscoring considerable price hikes within this category. These developments underscore the dynamic nature of the economy, necessitating keen observation and analysis to understand the underlying trends shaping market dynamics.
In the realm of fuel and power, there was a marginal decline observed, characterized by an index of 154.8, coupled with an inflation rate of 1.38 per cent. Despite this slight downturn, the sector continues to demonstrate resilience amidst fluctuating market conditions. Conversely, manufactured products experienced a modest uptick, registering an index of 140.8.
This increase was accompanied by a marginal inflation rate of -0.42 per cent, indicating a subtle but positive trend within the manufacturing landscape. These nuanced fluctuations underscore the intricate interplay between supply, demand, and external factors shaping the trajectory of key economic sectors.
In April 2024, the Wholesale Price Index (WPI) exhibited a month-over-month change of 0.79 per cent compared to March 2024, indicating a subtle yet discernible shift in market dynamics. Over the past six months, distinct patterns have emerged across key commodity groups. Primary articles, buoyed by increases in prices of crude petroleum & natural gas as well as food articles, recorded a notable uptick of 1.97 per cent.
Conversely, the fuel & power sector witnessed a slight decline of -0.26 per cent, primarily attributable to reduced electricity prices. Meanwhile, manufactured products experienced a modest increase of 0.50 per cent, underscoring the diverse trends observed within various manufacturing sectors. These fluctuations underscore the intricate dynamics at play within the economy, influenced by a myriad of factors ranging from supply chain disruptions to global market trends.
The WPI Food Index, which includes food articles and food products, saw an increase from 180.1 in March 2024 to 183.6 in April 2024. The inflation rate based on the WPI Food Index surged from 4.65 per cent to 5.52 per cent during the same period.
In conclusion, while the WPI for April 2024 indicates a positive inflation trend, detailed analysis of sectoral indices reveals nuanced fluctuations across various segments of the economy. These insights provide valuable perspectives for policymakers and stakeholders navigating the current economic landscape.
