Moderating onion prices eased wholesale inflation in April ahead of new government formation.
The Wholesale Price Index (WPI) in April rose at the rate of 5.2 per cent, according to official data released here on Thursday.
The rate of WPI inflation in March was 5.7 per cent. Consumers are unlikely to be able to notice the price changes as the latest available official figures on retail inflation show the rate of price rise was at a three-month high of nearly 8.6 per cent in April against 8.3 per cent in March.
Onion prices fell nearly 18 per cent since March. Inflation in potato prices, however, rose from 27.8 per cent in March to 31.6 per cent in April. Inflation in milk and eggs and meat remained elevated at close to 10 per cent against 11.2 per cent in the previous month.
Overall food inflation slowed to 8.64 per cent in April from 9.9 per cent in March.
“The headline inflation has shown a dip on the back of moderation in prices of food articles, fuel and power. However, given the recent increase in the diesel prices and uncertain outlook for monsoon, price movements will have to be critically watched going ahead. For the new government, this would be the single biggest challenge,” said FICCI President Sidharth Birla in a statement. He also expressed hope that the new government would roll out a comprehensive action plan to tackle inflation.
With the price hikes for diesel having been put on hold during elections and the rupee appreciating inflation in fuel products too eased somewhat from 11.2 per cent in March to just under 9 per cent.
