Inflation based on wholesale prices (WPI) quickened to an all-time high of 10.49 per cent in April from 7.39 per cent in the previous month on the back of higher fuel and power prices. Index of fuel and power prices jumped to 20.94 per cent compared with rise of 10.25 per cent in the previous month.
Manufacture products which has the highest weightage in the overall WPI index rose to 9.01 per cent from 7.34 per cent in the previous month.
Inflation for primary articles which has weightage of 22.62 per cent in the index rose to 10.14 per cent from 6.40 per cent in March, government data showed.
Wholesale food prices also registered an increase of 7.58 per cent from 5.28 per cent in March.
“The annual rate of inflation in April 2021 is high primarily because of rise in prices of crude petroleum, mineral oils viz petrol, diesel etc, and manufactured products as compared to the corresponding month of the previous year,” Ministry of Commerce & Industry said in a press release.
Reserve Bank of India Governor Shaktikanta Das had earlier said that manufacturing and services PMIs along with rising WPI inflation show a persistence of input price pressure.
“The inflation trajectory over the rest of the year will be shaped by the COVID-19 infections and the impact of localised containment measures on supply chains and logistics,” he had further noted.