Wholesale inflation slips, but vegetable prices rise in April; will RBI cut rates?

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Published: May 14, 2019 1:07:50 PM

wpi inflation Wholesale price-based inflation stood down at 3.07 per cent last month as against 3.18 in March.

Even as retail inflation picked up, wholesale inflation slipped in April on cheaper fuel and manufactured items official data  showed Tuesday. Wholesale price-based inflation stood down at 3.07 per cent last month as against 3.18 in March, even as the prices of food items remained higher. Analysts in the CNBC-TV18 poll had estimated the WPI inflation to be at 2.85 per cent. With steep rise recorded in the prices of vegetables, the food inflation hardened in April, the data showed.  Vegetables inflation was recorded at 40.65 per cent last month, as against 28.13 per cent in March. On Monday, Consumer price-based inflation or CPI Retail surged marginally to 2.92 per cent in April on account of rise in food prices. The retail inflation was recorded at 2.86 per cent in the last month and 4.58 per cent in April 2018, the Central Statistics Office (CSO) revealed.

Inflation in eggs, meat and fish rose to 6.94 per cent from 5.86 per cent in the last month. Similarly, inflation in onion stood at (-) 3.43 per cent as against (-) 31.34 per cent in the last month. Inflation in ‘fuel and power’ category eased to 3.84 per cent, from 5.41 per cent in March. The inflation in manufactured items too eased at 1.72 per cent in April, compared to 2.16 per cent in March, the data showed.

Also read: April retail inflation climbs to 6 month high of 2.92% as food prices rise again

The next monetary policy committee meeting headed by RBI Governor Sjaktikanta Das is scheduled for early June. it would be the second monetary policy review for FY20. Last month, the RBI which mainly considers retail inflation had slashed rates by 25 basis points. Since vegetable inflation had turned positive and may rise the summer months, a wait and watch approach is more likely by the MPC, CARE Ratings said in its report on rise in retail inflation released on Monday.

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