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

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.