India’s WPI falls for first time in 3 years in April
2023.05.15 04:14
© Reuters. FILE PHOTO: An accountant works next to the stacked sacks of garlic at a wholesale vegetable market in Chandigarh, India, January 14, 2016. REUTERS/Ajay Verma
NEW DELHI (Reuters) -India’s annual wholesale price index (WPI) fell for the first time in nearly three years in April, as prices softened across the board.
WPI fell by 0.92% from the same month a year earlier, having risen 1.34% in March. The data compared with a Reuters poll that predicted a fall of 0.20%.
In April, the food index rose 0.17% year-on-year, compared with 2.32% in March, while fuel and power rose 0.93% as against a 8.96% rise in the previous month.
“High base effect and falling commodity prices will lend downward pressure on WPI inflation this year,” said Madan Sabnavis, an economist at Bank of Baroda.
Low commodity prices will bring down prices of manufactured goods, Sabnavis said.
WPI has been easing for the last 11 months from the 20-year highs of 16.63% recorded in May 2022.
The decline in the rate of inflation was broad based, primarily driven by falls in prices of crude, energy prices, non-food and food articles, the government said in a statement.
Data released on Friday showed India’s annual retail inflation eased to an 18-month low in April, staying well below the Reserve Bank of India’s (RBI) upper tolerance limit for the second consecutive month.
