Wholesale inflation rises for second month in a row in April at 1.26%

Wholesale inflation rises for second month in a row in April at 1.26%

NEW DELHI: The wholesale inflation rose for the second consecutive month in April to 1.26 percent on account of the rise in prices of food articles, especially vegetables, along with fuel and power.

The wholesale price index (WPI)-based inflation was 0.79 percent in April last year. In March 2024, it was 0.53 percent.

"Positive rate of inflation in April 2024 is primarily due to increase in prices of food articles, electricity, crude petroleum and natural gas, manufacture of food products, other manufacturing etc," Ministry of Commerce & Industry said in a statement on Tuesday.

As per the data, inflation in food articles rose to 7.74 percent in April, as against 6.88 percent in March.

Inflation in vegetables was 23.60 percent in April, up from 19.52 percent in the previous month.

In the fuel and power basket, inflation stood at 1.38 percent in April, up from (-)0.77 percent in March.

The rise in April WPI is in contrast to the retail inflation data for the month. The RBI mainly takes into account retail inflation while framing monetary policy.

Retail inflation eased to an 11-month low of 4.83 percent in April.

The RBI last month kept interest rate unchanged for seventh time in a row and said that it remains vigilant towards upside risks to food inflation.