WPI inflation spikes to record high of 15.08% in April against 14.55% in March: Govt data

The Wholesale Price Index (WPI) inflation spikes to record high of 15.08 percent in April against 14.55 per cent in March, according to Government data.

The wholesale inflation across the country rose to 14.55 percent in March, data released by the Ministry of Commerce & Industry showed. It was The 10.74 per cent in April last year.

The wholesale price index (WPI) grew 13.11 percent during the month of February, while the WPI for January was revised to 13.68 percent from 12.96 percent, the data showed. The WPI in March 2021 was at 7.89 per cent.

The WPI inflation has remained in the double digits for the 13th consecutive month beginning April 2021.

"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 commerce and industry ministry said in a statement.

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 percent, while in manufactured products and oil seeds, it was 10.85 percent and 16.10 percent, respectively.

Inflation in crude petroleum and natural gas was 69.07 percent in April.
Data released last week showed that retail inflation rose to a near 8-year high of 7.79 percent in April, remaining above the Reserve Bank's inflation target for the fourth straight month.

To tame stubbornly high inflation, the RBI earlier this month hiked its key interest rate by 0.40 percent and cash reserve ratio by 0.50 percent in a surprise move.

DRE. Reddy, CEO and Managing Partner at CRCL LLP said, "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".

Published on: Tuesday, May 17, 2022, 12:22 PM IST