Higher food inflation pushes WPI up

The Wholesale Price Index (WPI) has risen to 0.34 per cent, for the first time since October 2014. This was led by higher food inflation especially in pulses, vegetables, and milk. Fuel inflation continued to fall, albeit at a slower pace, in April, while core inflation as measured by the CRISIL Core Inflation Indicator (CCII) rose to 1.82 per cent from 1.04 per cent earlier, driven by higher inflation in manufactured food products and beverages.

Food inflation (primary plus manufactured food) rose to 5.4 per cent from four per cent in March due to a rise in both primary and manufactured food inflation. Primary food inflation inched up to 4.2 per cent from 3.7 per cent, led by higher inflation in pulses (at 36.4 per cent), vegetables, milk, and spices. Inflation in processed food jumped to eight per cent from 4.5 per cent in March on the back of a rise in sugar, edible oils, and tea & coffee processing inflation.

In the 'fuel and power' category, prices fell at a slower rate as inflation stood at -4.8 per cent, compared with -8.3 per cent in March. This was led by a rise in prices of petrol and high-speed diesel, with the increase in excise duty by Rs 2.9 per litre for diesel and Rs 1.1 per litre for petrol in April-end.