Sunday, Sep 25, 2022

WPI Inflation Soars To A Record High Of 15.08% In April

In March this year, the WPI inflation rose to record-high at 14.55 per cent

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Wholesale inflation in April rose to a record high of 15.08 per cent from 14.55 per cent in March due to higher fuel and energy costs, according to government data.

The rate of inflation based on WPI Food Index increased marginally from 8.71 per cent in March, 2022 to 8.88 per cent in April, 2022. With this, the WPI inflation has been in double-digit for the 13 straight month.

"The high rate of inflation in April, 2022 was primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year," the government release said.

Inflation in food articles was 8.35 per cent, as prices of vegetables, wheat, fruits and potato witnessed sharp spike over the year-ago period. In the fuel and power basket, inflation was 38.66 per cent, while in manufactured products and oil seeds, it was 10.85 per cent and 16.10 per cent, respectively. Inflation in crude petroleum and natural gas was 69.07 per cent in April.

In March this year, the WPI inflation rose to record-high at 14.55 per cent from 13.11% in February. 

The annual WPI inflation has remained in the double—digits in every month of 2021-22.

The high rate of inflation in March, 2022 was primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict.

“The wholesale inflation has stayed well above expectations yet again. This is the 13th straight month that we witness double-digit inflation at the factory level. Nearly all components of the WPI have contributed to this high inflation. The high inflation print will put further pressure on the central bank to act on rates and easy monetary policy. A good monsoon and ease in tension will lead to crude prices ultimately putting downward pressure on inflation at large”, D.R.E Reddy, CEO and Managing Partner, CRCL LLP, said.

Earlier, India's retail inflation surged to 7.79 per cent in April, highest in 8 years,  largely driven by rising fuel and food prices, government data showed on Thursday. 

The consumer price-based inflation figure stayed well above Reserve Bank of India's (RBI's) upper tolerance limit for the fourth consecutive month.

Food inflation, which accounts for nearly half the consumer price index (CPI) basket, reached a multi-month high in April and can remain elevated due to higher vegetable and cooking oil prices globally.