Retail and wholesale inflation climbed up in April on the back of higher food and fuel prices, dashing hopes for an interest rate cut for now as the Reserve Bank of India (RBI) is expected to remain cautious about the build-up in inflationary pressures.
Data released by the Central Statistics Office (CSO) on Monday showed retail inflation, as measured by the Consumer Price Index (CPI), rose for the first time in four months to 4.6 percent in April, faster than the previous month’s 4.3%. Rural inflation stood at 4.7 percent, while urban inflation was at 4.4%. Fruit prices rose an annual 9.7 percent during April, while housing shot up 8.5 percent. Fuel and light rose 5.2 percent, while food and beverages grew 3 percent.
Separate data released by the Commerce showed inflation, measured by the Wholesale Price Index (WPI), rising to a 4-month high of 3.2 percent in April, higher than the previous month’s 2.5 percent. Potato prices rose an annual 67.9 percent, while fruit prices shot up 19.5% during the month. Fuel and power prices rose 7.8 percent, a result of the hardening of global crude oil prices.