Wholesale inflation rises to 42-month high of 8.3% in April

India's wholesale inflation surged to 8.3 per cent in April, a 42-month high, driven primarily by steep rise in fuel and crude oil prices.

The Wholesale Price Index (WPI) rose by more than double from 3.88 per cent in March. This comes amid increasing prices of prices of mineral oils, crude petroleum and natural gas, metals and manufactured products.

Crude petroleum inflation and natural gas jumped to 67.18 per cent from 35.98 percent in March, while inflation in crude petroleum alone soared to 88.06 percent from 51.57 per cent.

Meanwhile, Manufactured products inflation rose to 4.62 per cent in April from 3.39 per cent in March, led by chemicals, textiles and basic metals. Basic metals inflation was at 7 per cent, while chemicals and chemical products inflation rose to 5.09 per cent.

However, food inflation at the wholesale level remained contained Food inflation at the wholesale level remained, rising to 2.31 per cent from 1.85 per cent, while food articles inflation was up to 1.98 per cent from 1.90 per cent.

Vegetable prices saw a decline with Potato prices providing relief at -30.04 per cent, while onion inflation stood at -26.45 per cent from -42.11 per cent.

Wheat prices turned positive at 0.38 per cent after contracting 4.60 per cent in March.

The surge in crude oil and fuel costs is transferring into the manufacturing and transportation sectors even as food inflation is under control. This has risen the risk that wholesale inflation could spill over into consumer prices in the coming months if energy prices remain elevated.