Overall food inflation, which includes the ‘food articles’ of the primary articles group and the ‘food products’ of the manufactured goods group, increased from 6.61 percent in March 2022 to 6.8 percent in April 2022.
Food, metals and fuel prices rose to a record high of 15.1 percent in April, following a sharp rise in the WPI series.
“The heat wave has pushed up the prices of perishable items like fruits, vegetables and milk, pushing up the price of tea and pushing up primary food inflation,” said Aditi Nair, chief economist.
“WPI inflation accelerated to a new series high of 15.1% in April 2022, from 14.5% in March 2022, partly due to the monthly fuel price jump, and exceeded our forecast of 14.3%. With some correction in commodity prices in China as a result of offsetting the devaluation of the INR, WPI inflation could fall slightly below 15% in May 2022, when it is uncomfortably high, ”he added.
Despite the government’s efforts to ban wheat exports, retail food prices have risen. Retail inflation hit an eight-year high of 6.7 percent in April.
Edible oil and wheat prices have risen due to supply crisis in the international market.
The Reserve Bank of India (RBI) is expected to go for a further policy hike in June after a 40 basis point non-policy hike. The RBI considers retail inflation to reach its monetary policy decision.