The Wholesale Price Inflation rises to 10.49% which is an 11-year high and the last year at the same time WPi was -1.57%. This rise in WPI has been because of the hardening of commodities prices in the global market and the rise in fuel price. The last month, March, WPI was 7.39%.
"The annual rate of inflation in April 2021 is high primarily because of rising in prices of crude petroleum, mineral oils viz petrol, diesel etc, and manufactured products as compared the corresponding month of the previous year," the official release said.
The data released by the Union Commerce Minister shows that there was inflation of fuel and manufacturing was 20.94% and 9.01% respectively. There was a rise in the WPI, which climbed to 4.9%, of food articles due to the food items like fruits, non-vegetarian, tea.
The retail inflation for April 2021 climbed down to 4.29 % which is a three-month low but the predictions are made that it will rise in the month of May due to the rise in fuel price and other factors included. The WPI of May 2021 is also being predicted to rise before coming down in the subsequent months.
"We expect the headline WPI inflation to rise further to 13-13.5% in the current month before commencing a downtrend, whereas the core-WPI inflation may continue to rise over the next three prints to a peak of around 10.5%," said Aditi Nayar, ICRA.