WPI Inflation Eases To 0.85% In April Due To Crude And Fuel Prices

The Wholesale Price Index (WPI) inflation eased to a 13-month low of 0.85% in April, down from 2.05% in the previous month, which was due to a decline in prices in the fuel and power and primary articles segment, the Ministry of Commerce and Industry notified on Wednesday.

What Has Led To The Ease In Inflation?

There has been a broad-based fall in the prices of all commodities, which has led to the easing of inflation.

Among these, food inflation, which consists of 'food articles' from primary articles group and 'food product' from manufactured products group, decreased from 4.66% in March to 2.55% in April.

Manufactured products inflation reduced to 2.62% in April as compared to 3.07% in March, and primary articles inflation fell to -1.44% from 0.76%.

Further, fuel and power inflation also eased to -2.18% in April from 0.20% a month ago.

This is primarily happening due to the retail inflation cooling to a 68-month low of 3.16% for April, the ministry announced on Tuesday.

Additionally, the overall WPI index fell 0.2% on a month-on-month basis, driven by a decline in the prices of 'primary articles' and 'fuel & power'. But food as well as manufactured product indices rose by 0.3% and 0.4%, month-on-month, respectively.

The WPI inflation of vegetables in April was at -18.26%, which is the sharpest pace of decline recorded since October 2023. The inflation of stood at -5.57%, which is the lowest rate seen since October 2018.

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