For the first time in almost three years, the wholesale prices in India fell to (-) 0.92 per cent in April as softening global commodity prices brought down food, fuel, and other input costs for producers. This is the lowest level of wholesale price index (WPI) since June 2020, when inflation was at (-) 1.81 per cent. WPI inflation was at 1.34 per cent in March.
"Decline in the rate of inflation in April, 2023, is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products," the Commerce and Industry Ministry said on Monday.
April also saw easing in prices across commodities - food, non-food, fuel and power, and manufactured items. Inflation in food articles eased to 3.54 per cent in April, against 5.48 per cent in March. In the food articles category, prices of cereals, wheat, fruits, milk and egg, meat and fish declined over the previous month.
Inflation in vegetables was (-) 1.50 per cent, potato (-) 18.66 per cent, onion (-)18.41 per cent and wheat was at 7.27 per cent in April 2023. A negative WPI inflation, technically termed as deflation, means that overall wholesale prices have been falling year-on-year.
The high base at 15.38 per cent in April 2022, also contributed to the decline in wholesale inflation in April this year. Fuel and power basket inflation eased to 0.93 per cent in April from 8.96 per cent in March. In manufactured products, inflation was (-) 2.42 per cent, as against 0.77 per cent in March.
The deceleration in WPI comes in line with the easing of April retail inflation which came in at an 18-month low of 4.70 per cent.