Retail inflation drops to four-month low of 3.85% in April
A 13.64%-deflation in the prices of pulses also influenced the index.
India’s retail price inflation dropped to a four-month low of 3.85% in April with a slump in food and manufactured item prices, PTI reported. The central government on Friday released information about the wholesale price index and industrial output with 2011-2012 as the base year.
A deflation of 13.64% in the prices of pulses was an influencing factor. “A new food index is being compiled combining the food articles under primary articles and food products under manufactured products. Together with the Consumer Food Price Index released by the Central Statistics Office, this would help monitor the price situation of food items better,” a government statement said.
The Department of Industrial Policy and Promotion revised the Wholesale Price Index by categorising a revised list of items to “reflect the current reality”. It also excluded excise duty while computing WPI to insulate it from fiscal policy changes, Mint reported.
Inflation during the next three months will be subject to the monsoon, which the meteorological department forecasted as normal.