WPI inflation surges 10.49 pc in April, prices of food items, crude harden

“The annual rate of inflation in April 2021, is high primarily because of rise in prices of crude petroleum, mineral oils viz petrol, diesel etc, and manufactured products as compared to the corresponding month of the previous year,” the Ministry of Commerce and Industry said. 

Inflation in food articles in April was 4.92 per cent as prices of proteinrich items like egg, meat and fish hardened. Inflation in this basket was 3.24 per cent in March 2021. This was led by 10.88 per cent inflation in ‘’egg, meat and fish’’ basket during April, 10.74 per cent in pulses and 27.43 per cent in fruits. 

In vegetables, the rate of price rise was (-) 9.03 per cent, against (-) 5.19 per cent in the previous month. Inflation in the fuel and power basket was 20.94 per cent in April, while in manufactured products it was 9.01 per cent. ICRA Chief Economist Aditi Nayar said at 4.9 per cent inflation in food articles was at a six-month high and data shows a greater impact of supply chain disruptions at the wholesale level. 

“We expect the headline WPI inflation to rise further to 13-13.5 pc in the current month before commencing a downtrend, whereas the core-WPI inflation may continue to rise over the next three prints to a peak of around 10.5 per cent.,” Nayar added.