India’s annual Wholesale Price Index (WPI) inflation for the month of April fell to 3.85% from 5.70% in March, while the annual Consumer Price Index (CPI) inflation for April fell to 2.99% from 3.81% in March. The annual Index of Industrial Production (IIP) for March rose 2.7% from 1.9% in Feb. The government has also changed the base year for IIP calculation to 2011-2012 from the earlier 2004-2005.
Earlier Bank of America Merrill Lynch (BofA-ML) had forecasted that the April CPI inflation is expected to slip to 3.2 per cent from 3.8 per cent in March, well within the RBI’s 2-6 per cent target. The global financial services major had also said that food prices are likely to fall on a good summer Rabi harvest and this, in turn, is expected to bring CPI inflation down.
“We expect April CPI inflation to slip to 3.2 per cent from 3.8 per cent in March – well within the RBI’s 2-6 per cent target – on falling food inflation,” BofA-ML said in a research note.
According to Government data, retail inflation had jumped to a five-month high of 3.81 per cent in March, while inflation based on wholesale price index (WPI) slipped to 5.70 per cent.