India's Wholesale Inflation Hits 13-Month Low

In April 2025, India's wholesale price inflation eased to a 13-month low of 0.85%, a significant drop from March's 2.05%. This decline was primarily due to softer prices in food items, fuel, and manufactured goods, signaling potential further decreases in the coming months.

Food and Vegetables Lead the Decline

Food inflation stood at 0.26%, up from a negative figure in March. Notably, vegetables and potatoes saw significant price drops, with annual deflation rates widening. This trend was contrasted by a rise in fruit prices, highlighting varied impacts across food categories.

Fuel and Power Prices Continue to Fall

The fuel and power category experienced a deflation of 2.82% in April, driven by decreases in kerosene, electricity, petrol, and diesel prices. This sector's performance reflects broader trends affecting wholesale inflation rates.

Manufactured Products and Economic Outlook

Inflation for manufactured products slightly increased to 0.35%. Experts, including Rahul Agrawal from ICRA, predict a sub-2% average WPI for FY2026, influenced by monsoon forecasts and their potential impact on food inflation and overall economic growth.

Retail Inflation Eases, Opening Policy Adjustments

Retail inflation dropped to 3.16% in April, the lowest since July 2019, attributed to lower prices in vegetables, fruits, and pulses. This moderation may prompt the RBI to consider further rate cuts to support economic growth amidst external challenges.