Published: Tue, May 15, 2018
Finance | By Claude Patterson

India's WPI inflation accelerates to 3.18 percent in April

India's WPI inflation accelerates to 3.18 percent in April

Wholesale inflation had been falling since November, last year.

As per today's CPI data, the rate of price rise in protein rich items like meat and fish inched up in April to 3.59 per cent, as against 3.17 per cent in March. Fruits grew costlier by 19.47%, and onion by 13.62%. In March, deflationary pressures on food articles meant that pulses and vegetables turned cheaper while falling prices of at least some commodities such as tomatoes, reflected farmers' woes.

Last month, the RBI brought down its January-March (2017-18) inflation projection to 4.5 percent from at 5.1 percent earlier.

As per the Central Statistics Office (CSO) data, retail inflation was 4.28 per cent in March and 2.99 per cent in April past year. It touched a high of $78 this month.

"The index for crude petroleum rose by only about 1% to 73.9 in April 2018 from the revised 72.6 in February 2018, despite the around 10% rise in the price of the Indian crude oil basket in INR terms to about ₹4,513/barrel in April 2018 from about ₹4,084/barrel in February 2018".

"Transport and communication inflation has increased to 4.5 percent, 13 months high, petrol and diesel for vehicles is part of this group".

"Build up inflation rate in the financial year so far was 0.69 per cent compared to a build up rate of (nil) 0.00 per cent in the corresponding period of the previous year", the ministry said in the review for April 2018.

Other categories, however, recorded an increase in inflation.

Deflation in vegetables weakened to 0.89 per cent as compared to 2.70 per cent in March. RBI mainly takes into account retail inflation data while formulating monetary policy. Core CPI inflation remained high at 5.9 per cent in April as against 5.3 per cent in March.

"The government may prefer to wait for additional information about the level at which the monthly GST revenues stabilise after the e-way bill introduction, before reducing excise duty on fuels", she said.

India's annual wholesale price inflation picked up in October to a six. "The trajectory of RBIs policy in remainder of FY19 will be governed by the movement of oil prices".

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