अप्रैल में थोक महंगाई दर 13 महीने के उच्चतम स्तर पर पहुंच गई

अप्रैल में थोक महंगाई दर 13 महीने के उच्चतम स्तर पर पहुंच गई

Wholesale inflation hit a 13-month high in April

In April, India's wholesale prices surged to a 13-month high of 1.26%, driven by food inflation and a rise in fuel prices after deflation.

  • Business
  • 75
  • 14, May, 2024
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Sampda Gupta
  • @SampdaGupta

Wholesale inflation hit a 13-month high in April

In April, India witnessed a notable surge in wholesale prices, hitting a 13-month high of 1.26%, compared to 0.53% in March. This rise can be attributed to several factors, including an increase in food inflation and a 1.4% year-on-year uptick in fuel and power prices after experiencing deflation for several months. The Wholesale Price Index (WPI) has been on a continuous upward trajectory for the past six months on a year-on-year basis, following seven months of deflation. On a month-on-month basis, the WPI saw a 0.8% increase, with primary articles and food prices experiencing a nearly 2% surge in April, while manufactured products also rose by 0.5%. Food inflation saw a significant uptick, with primary food articles witnessing a rise from 6.88% in March to a four-month high of 7.74% in April. This increase occurred despite a slight easing in cereals and pulses inflation. Notably, vegetables inflation spiked to 23.6% from 19.5% in March. Potatoes and onions were particularly affected, with inflation rates reaching 72% and 59.8%, respectively, up from 53% and 57% in March. Other commodities such as paddy also saw a notable increase in inflation, rising over 12%. However, the price rise in eggs, meat, and fish stood at 0.9%, compared to a 1.86% decline in March. At the retail level, inflation in eggs was recorded at 7.1%, while meat and fish prices surged past 8% in April. Conversely, the rise in wheat and milk prices slightly eased to 5.7% and 4.3%, respectively, while fruit prices witnessed a decline of 1.8% compared to the previous April.

The Wholesale Food Index rose by 5.5% in April, compared to 4.65% in March, while the decline in manufactured products’ prices slowed to 0.4% from 0.8% in the previous month. Inflation in primary articles also increased from 4.5% in March to 5% last month, indicating a broad-based reversal of wholesale price trends. Despite these increases, some manufactured products recorded lower prices compared to a year ago, although the decline in edible oils prices reduced to 5% in April from over 8% in March. Prices for food products and beverages rose by 1.25% and 1.6%, respectively, while apparel prices surged by 2.34%, the fastest pace in at least six months. In the energy sector, crude petroleum and natural gas inflation increased from 4.87% in March to 4.97% in April. Moreover, Fuel and Power inflation turned positive after months of decline, with the decrease in diesel prices slipping to 1.86% from 3.5% in March. Overall, the inflationary pressures experienced in various sectors highlight the complex dynamics influencing India’s wholesale price index, signaling potential challenges for policymakers in managing inflationary trends while sustaining economic growth.

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Sampda Gupta

  • @SampdaGupta