India's WPI-based inflation reaches 13-month high of 1.26% in April

April 2024 WPI: Prices of crude petroleum & natural gas and food articles witnessed a surge in April 2024 compared to March 2024, while prices of non-food articles and minerals saw a decline

April's Wholesale Price Index (WPI)-based inflation surged to a 13-month high of 1.26 per cent in April, surpassing the estimated one per cent mark. Comparatively, March wholesale inflation was 0.53 per cent, outperforming the forecast 0.20 per cent. January's wholesale inflation stood at 0.27 per cent.

April WPI: Primary articles surge

Primary articles, carrying a weightage of 22.62 per cent, rose by 1.97 per cent to 186.7 (provisional) in April 2024 from 183.1 (provisional) in March 2024.

Notably, prices of crude petroleum & natural gas (3.56 per cent) and food articles (2.67 per cent) witnessed a surge in April 2024 compared to March 2024. However, prices of non-food articles (-1.19 per cent) and minerals (-1.55 per cent) declined during the same period.

April WPI: Fuel & power fluctuation

Fuel & Power, constituting 13.15 per cent of the index, experienced a slight decline. The index for this segment dropped by 0.26 per cent to 154.8 (provisional) in April 2024 from 155.2 (provisional) in March 2024. While prices of mineral oils (0.06 per cent) increased, those of electricity (-1.20 per cent) witnessed a dip in April 2024 compared to March 2024.

April WPI: Growth in Manufactured products

Manufactured Products, with a substantial weightage of 64.23 per cent, exhibited growth. The index for this category rose by 0.50 per cent to 140.8 (provisional) in April 2024 from 140.1 (provisional) in March 2024. 

Among the 22 NIC two-digit groups, 15 experienced price hikes, five saw declines, and two remained unchanged.

Notable increases were observed in basic metals, other manufacturing, textiles, food products, and chemical & chemical products. Conversely, some groups, including other non-metallic mineral products, paper & paper products, motor vehicles, trailers & semi-trailers, and furniture, witnessed price decreases in April compared to the previous month.

April WPI food index

The WPI Food Index, with a weightage of 24.38 per cent, showed an upward trend. It climbed from 180.1 in March 2024 to 183.6 in April 2024. 

Consequently, the inflation rate based on the WPI Food Index surged to 5.52 per cent in April from 4.65 per cent in March.

During the same period last year, India's annual WPI-based inflation declined to 0.92 per cent, a 34-month low.