Wholesale Price Inflation Hits 13-Month Low Amid Food and Fuel Deflation

Wholesale price inflation dropped to a 13-month low of 0.85% in April, driven by deflation in food and fuel prices, along with disinflation in manufactured products. Experts predict further easing, with notable deflation in food items and a decline in crude oil prices affecting the indices.

Wholesale price inflation plummeted to a notable 13-month low of 0.85% in April, influenced significantly by the reduced costs of food, fuel, and manufactured products, according to government data released Wednesday.

April saw a 0.86% deflation in food articles, representing a sharp decline from March's 1.57% inflation, with vegetables and fruits experiencing significant price drops. Fuel and power experienced a 2.18% deflation, in contrast to March's inflationary figures.

Crude oil prices maintained their position within the USD 60-65 per barrel range, pressured downward by OPEC+'s production announcements. Analysts predict the easing of inflation will open avenues for further rate cuts by the Reserve Bank, after recent reductions aimed at stimulating the economy.