India’s wholesale price index rises by a record high of 15.1% y/y in April

The month of April brought about another record high for the wholesale price index, which increased by 15.1% y/y, from 14.6% y/y in March. The wholesale price index for fuel and power also continued to rise, accelerating to 38.7% y/y in April, albeit remaining below its record high of 44.4% y/y in November.

However, since this occupies only about 13.2% of the total inflation basket, the key driver in inflation stemmed from manufactured products, which is the largest component. The acceleration in the wholesale price index for manufactured products was less pronounced as compared to the category of fuel and power, marking a 0.2pp increase to 10.9% y/y in April. On the other hand, the WPI pertaining to primary articles, which forms the second-largest component of the basket by weight, grew by 15.4% y/y, decelerating by 0.1pp. The wholesale food inflation grew by 8.9% y/y, gaining momentum of 0.2pp over March, marking the third consecutive increase in a row.

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2022 report.