India's Wholesale Inflation Accelerates in April
Pushed by rising fuel and power bills, India's wholesale prices rose by 8.30% on year in April, the highest gain since late 2022, reported the Ministry of Commerce and Industry (MCI) on Thursday.India's wholesale price index (WPI) in April alone rose 3.86% from March, lifted by fuel and power charges that rose 18.22% on month, in the wake of mounting fuel shortages occasioned by the closure of the Strait of Hormuz in March.Crude petroleum prices rose 16.99% in April from March, and by 88.06% from a year earlier, according to officials.Petrol (gasoline) prices rose 24.49% in April from March, and by 32.40% from a year earlier, added the MCI.India's WPI is distinct from the consumer price index (CPI), which measures prices in retail locations, faced by ordinary shoppers.The WPI gauges prices of goods sold in bulk at the wholesale level, before products reach the retail market. The WPI provides clues into cost pressures within the supply chain and production sectors, and is considered one precursor to subsequent changes in the CPI.In contrast to wholesale fuel bills, India's WPI food index rose a relatively modest 2.31% in April on year, while that for manufactured products rose 4.62% on year, reported MCI.The April wholesale price report will likely be closely reviewed by the Reserve Bank of India (RBI), the nation's central bank.India's CPI rose 3.48% on year in April, reported officials, still within the central bank's target range on the index of 4% plus or minus 2%.At its April policy session, the RBI held its key policy interest rate steady at 5.25%, and has not altered the rate this year.The next RBI Monetary Policy Committee meeting is slated for June 3 through 5.