Wholesale inflation soars to 10.49% in April on higher fuel prices

Prices of primary articles were up 10.16% in April from -1.08 per cent a year ago; little scope for rate cuts, say experts

India’s wholesale price-based inflation surged to an 11-year high of 10.49 per cent in April, mainly due to a sustained rise in fuel and commodity prices, signalling a build-up of inflationary pressures.

This can also be attributed to a low-base effect. Wholesale inflation had come in at (-)1.57 per cent in April 2020 amid a nationwide lockdown.

The inflation rate based on the wholesale price index (WPI) has been rising since December. It had soared to an eight-year high of 7.39 per cent in March. The latest number is the highest since April 2010.

The WPI captures the average movement of wholesale prices