Published: Tue, May 15, 2018
Sports | By Brooke Harris

India's Wholesale Inflation Rate Rises To 3.18% In April

India's Wholesale Inflation Rate Rises To 3.18% In April

India's wholesale price inflation stood at 3.18% for the month of April 2018, corresponding to the same month in the preceding year, the Ministry of Commerce and Industry said on Monday.

The inflation based on Consumer Price Index (CPI), a key data factored in by the Reserve Bank while deciding interest rate, was 4.28 percent in March.

The official WPI for all commodities (Base: 2011-12 = 100) for the month of April 2018 rose by 0.7 per cent to 116.8 from previous month's level of 116.0, the data showed. The rate had increased to 3.85 percent in April 2017.

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"Build up inflation rate in the financial year so far was 0.69 per cent..."

Consumer Price Index (Combined)-linked inflation rate, after moderating for three months, inched higher to 4.58 per cent in April with a rise in prices across the categories of clothing and footwear, housing and pan, tobacco and intoxicants, government data released on Monday showed.

Similarly, the inflation in the fruit basket was higher at 9.65 per cent compared to 5.78 per cent in the previous month. It said, Inflation in fruits was in double digits at 19.47 per cent in April, up from 9.26 per cent in the previous month. However, the price of manufacture of cordage, rope, twine and netting, woollen yarn and made-up textile articles (1 per cent each) declined.

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The core inflation remained unchanged at 3.6 per cent in April.

Along with the rise in inflation, a jump in the global price of oil, India's costliest and largest import, overestimated government expenditure and a sharp weakening in the rupee could cause the RBI to review its long-standing neutral stance.

The inflation came exceeded expectation as a Reuters poll of economists predicted it to come at 4.42 per cent.

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Other categories, however, recorded an increase in inflation. Inflation in December was 3.58 per cent. However, economists said that the price rise was expected to continue to rise over the remainder of this quarter. "However, a normal monsoon and moderate food inflation may act as a counter". RBI mainly takes into account retail inflation data while formulating monetary policy.

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