India's wholesale price inflation eased for the third successive month in April, dropping to the lowest level in nearly three-and-half years, giving the central bank enough room to ease its monetary policy further in a bid to prop up the the flagging economy.
Inflation as per the wholesale price index dropped markedly to 4.89 percent in April from 5.96 percent in March, marking the third successive deceleration, initial estimates from the Central Statistics Office showed Tuesday. Economists had forecast a more moderate slowdown to 5.45 percent. The rate was the lowest since November 2009.
The fall in the inflation rate reflected slower growth in food prices, which rose 6.08 percent compared to 8.73 percent in March. Primary articles as a whole recorded slower price growth of 5.75 percent in April compared to 7.6 percent a month earlier.
Costs of non-food articles increased 7.59 percent following a 8.95 percent increase in March. At the same time, the growth in fuel and power prices slowed to 8.84 percent from 10.18 percent.
On a monthly basis, the wholesale price index edged up 0.5 percent in April, data showed.
The statistical office said yesterday that inflation as per the consumer price index slowed to 9.39 percent in April from 10.39 percent in March. The price index for food and beverages climbed 10.61 percent, and costs of fuel and light rose by 8.1 percent.
Earlier this month, the Reserve Bank of India lowered its key rates by a quarter point for the third time this year to revive the slowing economy, which has seen growth falling to a decade-low during the final months of last year.
The bank, meanwhile, hinted that there is limited scope for further rate-cuts in the coming months, citing the huge current account deficit and high inflation. The stance of monetary policy is intended to address accentuated risks to growth, guard against the risks of inflation pressures re-emerging and to appropriately manage liquidity, it said.
The central bank projects baseline GDP growth of 5.7 percent for 2013-14 compared with the 5.5 percent growth it estimated for the previous fiscal year.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.