WPI deflation at record high of 2.65% in April
Deflationary pressure continued for the sixth month in a row with inflation dropping to a new low of (-)2.65 per cent in April, mainly on account of decline in prices of fuel and manufactured items even as food prices increased. Inflation, as measured on the Wholesale Price Index (WPI), has been in the negative zone since November, 2014. In April last year, it was 5.55 per cent.
The deflationary trend has bolstered the case for a rate cut by the Reserve Bank, as retail inflation has also eased and industrial production is down, experts said. Industrial output had slowed to 5-month low of 2.1 <g data-gr-id="25">per cent</g> in March. Inflation was (-)2.33 per cent in March, (-)2.17 per cent in February, (-)0.95 per cent in January, (-)0.50 per cent in December and (-) 0.17 <g data-gr-id="26">per cent</g> in November.
In April this year, the manufactured products segment witnessed deflation for the second consecutive month as prices dropped by a record low of (-)0.52 per cent. Inflation in food articles category stood at 5.73 per cent, from 6.31 per cent in March. For fuel and power, it was (-)13.03 <g data-gr-id="23">per cent</g> in April. Potato prices saw the steepest fall of (-)41.14 <g data-gr-id="24">per cent</g> in April. For vegetables, the decline was (-)1.32 per cent.
However, inflation in pulses was at 15.38 per cent, and for egg, meat and fish at 4.01 per cent during the month. The February WPI inflation has been revised downwards to (-)2.17 per cent.