India’s wholesale inflation rate for April has hit a 13-month low, partially due to moderating food prices.
According to government data released today, the year-on-year wholesale inflation rate stood at 0.85% in April, down from March’s 2.05%.
It is also lower than the estimated 1.76% predicted by economists in a Reuters poll and the slowest pace since March 2024.
Wholesale food prices see a slight increase
Food inflation
Even though wholesale inflation slowed down, food prices still rose—just more slowly.
In April, these prices increased by 2.55% year-on-year, as opposed to a larger 4.66% increase seen in March.
Meanwhile, vegetable prices saw a major drop of 18.26%, following an earlier 15.88% decline in March.
This fluctuation highlights the volatility within the food sector’s contribution to wholesale inflation rates.
Fuel and power prices witness a decrease
Energy costs
Along with food prices, fuel and power costs also witnessed a decline in April.
These prices declined by 2.18% year-on-year, as opposed to a slight increase of 0.20% witnessed in the month of March.