India’s WPI falls for first time in 3 years in April

India’s annual wholesale price index (WPI) fell for the first time in nearly three years in April, as prices softened across the board.

WPI (INWPI=ECI) fell by 0.92per cent from the same month a year earlier, having risen 1.34 per cent in March. The data compared with a Reuters poll that predicted a fall of 0.20 per cent.

In April, the food index rose 0.17per cent year-on-year, compared with 2.32per cent in March, while fuel and power rose 0.93per cent as against a 8.96per cent rise in the previous month.

“High base effect and falling commodity prices will lend downward pressure on WPI inflation this year,” said Madan Sabnavis, an economist at Bank of Baroda.

Low commodity prices will bring down prices of manufactured goods, Sabnavis said.

WPI has been easing for the last 11 months from the 20-year highs of 16.63per cent recorded in May 2022.

The decline in the rate of inflation was broad based, primarily driven by falls in prices of crude, energy prices, non-food and food articles, the government said in a statement.