New Delhi: Inflation based on the wholesale price index slipped to a four-month low of 3.85 percent in April as both food articles and manufactured items showed cooling in prices.
The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products.
The WPI inflation readings, reflecting the annual rate of price rise, as per the new base stood at 5.29 percent in March, 5.51 percent in February, 4.26 percent in January, 2.10 percent in December and 1.82 percent in November.
The low food inflation was mainly because pulses saw deflation of 13.64 per cent, vegetables (-7.78 percent), potato (-40.97 per cent) and onion (-12.47 percent).
"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.
Last month, the Reserve Bank had left the key policy rate unchanged at 6.25 percent for the third review in a row, citing upside risks to inflation. It had, however, increased the reverse repo rate -- which it pays to banks for parking funds with it -- by 0.25 percent to 6 per cent, narrowing the policy rate corridor.
Comments
0 comment