India's Wholesale Inflation Reaches 42-Month High of 8.3% in April
Wholesale inflation hits 42-month high of 8.3% in April
The Economic Times
Image: The Economic Times
India's wholesale inflation soared to 8.3% in April, the highest in 42 months, driven primarily by rising fuel and energy prices. Analysts predict inflation may climb further to 9% in May due to ongoing geopolitical tensions and seasonal food price increases.
- 01Wholesale inflation rose to 8.3% in April, up from 3.9% in March.
- 02Fuel and power prices saw a dramatic increase, with fuel inflation hitting 24.7%.
- 03Crude petroleum prices surged to 88.1% year-on-year.
- 04Core inflation for non-food manufactured items reached a 43-month high of 5%.
- 05Retail inflation also increased slightly to 3.5% in April.
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India's wholesale inflation surged to 8.3% in April 2023, marking a 42-month high compared to 3.9% in March. This increase was primarily driven by significant rises in fuel and power prices, with fuel inflation reaching 24.7% year-on-year. Crude petroleum prices spiked to 88.1%, reflecting the impact of the ongoing conflict in West Asia and supply chain disruptions. Analysts from India Ratings and Research (Ind-Ra) and ICRA predict that inflation could climb to 9% in May, influenced by seasonal food price increases and the depreciation of the Indian Rupee against the US Dollar. The core wholesale price index (WPI) inflation for non-food manufactured items also hit a 43-month high of 5%. Meanwhile, retail inflation edged up to 3.5% in April, driven by rising food and gold prices, indicating broader economic pressures.
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Rising wholesale inflation is likely to lead to increased costs for consumers, affecting prices of essential goods and services.
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