MoneyWorks4Me

Just In: April WPI inflation quickens to 7.23 v/s 6.89% in March

14 May 2012 Evaluate

The annual rate of inflation, based on index numbers of wholesale prices (WPI) in India, unexpectedly accelerated in the month of April as it came in at 7.23% as compared to 6.89% for the previous month and 9.74% during the corresponding month of the previous year. Build up inflation in the financial year so far was 2.07% compared to a build up of 1.74% in the corresponding period of the previous year.

The index for primary articles group, which has a weightage of 20.12% in overall WPI, rose by 4.7 percent to 215.9 from 206.3 for the previous month. The index for fuel and power group with a weightage of 14.91% in WPI rose by 1.8% to 177.1 from 174.0 for the previous month. The index of Manufactured Products group (weight 64.97% of WPI) rose by 1.0% to 143.6 from 142.2 for the previous month.

India's wholesale price index has taken everyone by surprise as it quickened in the month of April amid consensus expectations of a moderation in the rate of price rise to 6.7%. In the backdrop of sharp contraction in industrial production and rise in WPI inflation, the Indian Reserve Bank remains in a tight spot as it finds itself trapped between curbing inflation and trying to shore up economic growth.

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