Big fall in wholesale inflation, reaching the lowest level of 13 months in April, know the reason
New Delhi:
In April, the wholesale price index (WPI) based inflation in India has come down to 0.85 percent. This figure was 2.05 percent in March. That is, there has been a significant decline in wholesale inflation in April. This is the lowest level of wholesale inflation in the last 13 months. These figures were released by the government on Wednesday.
Reduction in wholesale inflation due to decrease in prices of food products
The biggest reason behind this decline is the decrease in the prices of food and drink. In April, the wholesale inflation on food products declined to 2.55 percent, compared to 4.66 percent in March. This reduction in the prices of food items has a direct impact on WPI.
However, there has not been a complete decline. The prices of some things have also increased, due to which the wholesale inflation remained positive in April. The government said that the prices of chemical and related products, transport equipment and manufacturing of machines have increased, which maintained the total inflation.
Inflation increased in manufacturing sector, relief in fuel and raw materials
The inflation rate of manufacturing products in April has increased to 2.62 percent. At the same time, inflation in fuel and power sector has come down to 2.18 percent and inflation in primary products i.e. raw materials has fallen to 1.44 percent.
Retail inflation also fell, lowest level after July 2019
Along with wholesale inflation, retail inflation has also declined. According to data released on Tuesday, the retail inflation rate in April has come down to 3.16 percent, which was 3.34 percent in March. This figure is the lowest level since July 2019. This is the third consecutive month when retail inflation has been below the Target of 4 percent of the Reserve Bank of India (RBI).
Now expectation of repo rate reduction increased
These data of inflation can give the Reserve Bank a chance to reduce interest rates i.e. repo rate in the coming time. Earlier, in February and April, RBI has cut 25-25 basis points twice. After this, the repo rate has come down to 6 percent at the moment.