India's wholesale price index increased by 3.18 percent on the year in April, picking up from 2.47 percent on the year in March, and advanced 0.69 percent on the month, after an increase of 0.17 percent previously. This is the first increase in WPI inflation since November and is broadly in line with Reserve Bank of India forecasts for price pressures to strengthen over the year.
The increase in WPI inflation in April reflects stronger gains in food and fuel prices. Food prices, which account for around 15 percent of the index, advanced by 0.87 percent on the year in April, rebounding from a decline of 0.29 percent in March, with vegetable prices dropping by 0.89 after falling 2.70 percent previously. The year-on-year increase in fuel and power prices (around 13 percent of the index) picked up from 4.70 percent in March to 7.85 percent in April, while inflation for manufactured products (around 64 percent of the total index) increased from 3.03 percent to 3.11 percent.
Consumer price index data for April are scheduled for release later today.