NEW DELHI: The country’s wholesale price index (WPI) is up by 0.34 per cent in April, after staying in negative zone for consecutive 17 months driven by costlier food items such as pulses, potato and sugar, latest price data released on Monday showed.
The India Inc has benefitted from the increase in global commodity prices. The wholesale inflation rates, a marker for price movements in bulk buys for traders, broadly mirrored trends in retail prices over the last few months.
Analysts however are pessimistic, as WPI inflation continues to be soft, a delay in monsoon rains and rise in consumer price index (CPI) inflation to 5.39 percent in April from 4.83 percent in March reduces chance of RBI rate cut in the near term.
However, the high interest scenario will put aside any chances of rate cut by the Reserve Bank of India monetary policy review next month.
This year’s monsoon rains are critical for prospects of the broader economy, still smarting under the effects of two years of back-to-back drought.