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WPI inflation falls to 13-month low of 0.9%

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WPI inflation falls to 13-month low of 0.9%

NEW DELHI: Wholesale price inflation dipped sharply to a 13-month low in April, led by a moderation in food, fuel, and manufactured products. This adds to the prospects of a fresh cut in interest rates when the Reserve Bank of India (RBI) reviews monetary policy at its next meeting in June.Data released by the commerce and industry ministry on Wednesday showed inflation, measured by the wholesale price index, slowed sharply to 0.9% in April, below the 2.1% recorded in March. The annual rate of inflation based on the WPI Food Index decreased from 4.7% in March to 2.6% in April. Inflation in vegetables fell 18.3% in April, while potato prices were down 24.3%. Fuel and power group inflation was down 2.2%.“Encouraging prospects for agricultural production, the arrival of the fresh Rabi harvest, and comfortable reservoir levels are positives for food inflation,” said Rajani Sinha of CareEdge.





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