Wholesale prices in India fell for the first time in almost three years in April, as softening global commodity prices brought down food, fuel, and other input costs for producers. WPI inflation has been on a declining trend for the past 11 months and came in at (-) 0.92 per cent in April. This is the lowest level of wholesale price index (WPI) since June 2020, when inflation was at (-) 1.81 per cent.

WPI inflation was at 1.34 per cent in March. Barclays in a research note said it expects WPI inflation to continue to moderate as easing commodity prices drive input costs lower. “We think the moderation in retail inflation (which we expect to continue) suggests a pause is likely in the next Monetary Policy Committee (MPC) meeting in August.