Overview
- Official data released Thursday show wholesale inflation at 8.3% year over year in April, a 42‑month high and the sharpest month‑to‑month rise in the current series.
- Fuel and power drove the surge, with inflation in that category at 24.71% and steep increases in crude petroleum at 88.06%, petrol at 32.40%, diesel at 25.19% and LPG at 10.92%.
- WPI, which tracks producer prices, diverged from consumer inflation at 3.48% in April because the government and state oil firms kept pump and household LPG prices steady, straining company margins and the public balance sheet.
- Core wholesale inflation rose to about 5% and manufactured products inflation reached 4.62%, signaling higher input costs for metals, chemicals and textiles that could translate into higher shelf prices or thinner profits.
- India Ratings and ICRA project May wholesale inflation near or above 9%, and Barclays notes a possible Rs 5‑per‑litre petrol and diesel hike this month as risks from West Asia supply disruptions, the Strait of Hormuz and a weaker rupee persist.