WPI-based inflation sliding

India’s wholesale price index (WPI)-based inflation is on a downward trajectory and is expected to see a bigger dip in April.

“February inflation was 8.3 per cent, in March it hovered around 8 per cent. April inflation will see a bigger drop and is expected to be just below 7 per cent. After that, it will inch down to 5 per cent for the rest of the year,” Kaushik Basu, chief economic adviser, said at a session on inflation and growth organised by the Bengal Chamber of Commerce & Industry.

“This prediction on inflation is based on current prices. We are assuming it will come down. If food prices go up, it will put additional pressure on inflation and may even affect the country’s growth,” he added. Despite the easing in the coming months, Basu said among the critical issues facing the country were hard decisions pertaining to inflation, growth and corruption.