Food articles saw a deflation of 0.86 per cent in April, against an inflation of 1.57 per cent in March.
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With drop in the prices of food articles and manufactured goods, producers’ inflation based on Wholesale Price Index (WPI) dipped to 0.85 per cent in April, government reported on Wednesday. This is lowest in 13 months. Experts feel that this print could go down further.
WPI-based inflation was 2.05 per cent in March. It was 1.19 per cent in April last year.
“Positive rate of inflation in April is primarily due to an increase in prices of manufacture of food products, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and manufacture of machinery and equipment, etc,” the industry ministry said in a statement.
Food articles saw a deflation of 0.86 per cent in April, against an inflation of 1.57 per cent in March. Deflation in vegetables was 18.26 per cent during April compared to deflation of 15.88 per cent in March. In onion, inflation eased to 0.20 per cent in April, as against 26.65 per cent in March. Inflation in fruits softened to 8.38 per cent, from 20.78 per cent in the previous month.
Potato and pulses saw a deflation of 24.30 per cent and 5.57 per cent, respectively. Deflation in fuel and power was 2.18 per cent in April, compared to a 0.20 per cent inflation in March. Crude oil prices have generally remained in the USD 60-65/ barrel handle in April, with downward pressure arising from OPEC+ announcing production increases. OPEC+ is a group of 23 oil-producing countries that work together to manage the supply of oil in the world market in order to influence global oil prices. Manufactured products, however, saw inflation at 2.62 per cent in April, compared to 3.07 per cent in March.
According to Rajni Sinha, Chief Economist with CareEdge, encouraging prospects for agricultural production, the arrival of fresh Rabi harvest, and comfortable reservoir levels are positives for food inflation. IMD’s projection of an above-normal monsoon should support robust growth in agricultural output. However, monitoring the monsoon’s distributional aspect will be crucial. Food inflation is likely to remain comfortable in the coming months. However, we need to be cautious of any weather-related disruptions.
International commodity prices have also declined following the escalation of the tariff war, reflecting growing pessimism regarding the global economy’s growth momentum. In April, average Brent crude prices dropped by approximately 25 per cent YoY, while the Bloomberg Industrial Metals Subindex fell by 0.7 per cent YoY. “The imposition of US tariffs has further heightened concerns over dumping, as these measures could lead to an oversupply in global markets due to surplus production from China. Additionally, the recent fall in the dollar index alleviates the risks of imported inflation. For FY26, we expect WPI inflation to average close to 3 percent,” said Sinha.
Published on May 14, 2025
Food articles saw a deflation of 0.86 per cent in April, against an inflation of 1.57 per cent in March.
| Photo Credit:
–
With drop in the prices of food articles and manufactured goods, producers’ inflation based on Wholesale Price Index (WPI) dipped to 0.85 per cent in April, government reported on Wednesday. This is lowest in 13 months. Experts feel that this print could go down further.
WPI-based inflation was 2.05 per cent in March. It was 1.19 per cent in April last year.
“Positive rate of inflation in April is primarily due to an increase in prices of manufacture of food products, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and manufacture of machinery and equipment, etc,” the industry ministry said in a statement.
Food articles saw a deflation of 0.86 per cent in April, against an inflation of 1.57 per cent in March. Deflation in vegetables was 18.26 per cent during April compared to deflation of 15.88 per cent in March. In onion, inflation eased to 0.20 per cent in April, as against 26.65 per cent in March. Inflation in fruits softened to 8.38 per cent, from 20.78 per cent in the previous month.
Potato and pulses saw a deflation of 24.30 per cent and 5.57 per cent, respectively. Deflation in fuel and power was 2.18 per cent in April, compared to a 0.20 per cent inflation in March. Crude oil prices have generally remained in the USD 60-65/ barrel handle in April, with downward pressure arising from OPEC+ announcing production increases. OPEC+ is a group of 23 oil-producing countries that work together to manage the supply of oil in the world market in order to influence global oil prices. Manufactured products, however, saw inflation at 2.62 per cent in April, compared to 3.07 per cent in March.
According to Rajni Sinha, Chief Economist with CareEdge, encouraging prospects for agricultural production, the arrival of fresh Rabi harvest, and comfortable reservoir levels are positives for food inflation. IMD’s projection of an above-normal monsoon should support robust growth in agricultural output. However, monitoring the monsoon’s distributional aspect will be crucial. Food inflation is likely to remain comfortable in the coming months. However, we need to be cautious of any weather-related disruptions.
International commodity prices have also declined following the escalation of the tariff war, reflecting growing pessimism regarding the global economy’s growth momentum. In April, average Brent crude prices dropped by approximately 25 per cent YoY, while the Bloomberg Industrial Metals Subindex fell by 0.7 per cent YoY. “The imposition of US tariffs has further heightened concerns over dumping, as these measures could lead to an oversupply in global markets due to surplus production from China. Additionally, the recent fall in the dollar index alleviates the risks of imported inflation. For FY26, we expect WPI inflation to average close to 3 percent,” said Sinha.
Published on May 14, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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