Wholesale Inflation Rises for Second Consecutive Month in April 2024

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Wholesale Inflation Rises for Second Consecutive Month in April 2024

Wholesale Inflation Rises in April

India's wholesale inflation, measured by the Wholesale Price Index (WPI), rose for the second consecutive month in April 2024, reaching 1.26%. This increase was primarily driven by a rise in food articles, fuel, and power. In March, the WPI inflation stood at 0.53%, and in April 2023, it was 0.79%.

The Ministry of Commerce & Industry attributed the rise in April's WPI inflation to an increase in prices of food articles, electricity, crude petroleum & natural gas, manufactured food products, and other manufacturing sectors. The WPI Food Index, which includes food articles from the primary group and food products from the manufactured products group, increased from 180.1 in March to 183.6 in April. The rate of inflation based on the WPI Food Index also increased from 4.65% in March to 5.52% in April.

The Primary Articles index increased by 1.97% to 186.7 in April from 183.1 in March. Prices of crude petroleum & natural gas (3.56%) and food articles (2.67%) increased in April compared to March. However, prices of non-food articles (-1.19%) and minerals (-1.55%) declined in April.

The Fuel and Power group index declined by 0.26% to 154.8 in April from 155.2 in March. This decrease was mainly due to a decline in electricity prices (-1.20%), while prices of mineral oils increased by 0.06%.

The index for the Manufactured Products group increased by 0.50% to 140.8 in April from 140.1 in March. Out of the 22 NIC two-digit groups for manufactured products, 15 groups witnessed an increase in prices, five groups saw a decrease in prices, and two groups witnessed no change in prices. Some of the groups that showed a month-over-month increase in prices were basic metals, other manufacturing, textiles, food products, and chemical & chemical products. Groups that witnessed a decrease in prices included other non-metallic mineral products, paper & paper products, motor vehicles, trailers & semi-trailers, furniture, and leather & related products.