Economists expect more interest rate hikes by RBI

NEW DELHI: Wholesale price index (WPI) based inflation jumped to a new high of 15. 1% in April, according to data released by the Department for Promotion of Industry and Internal Trade.
The high rate of inflation in April 2022 was due to the rise in prices of mineral oils, basic metals, crude petroleum and natural gas, food articles, nonfood articles, food products and chemicals & chemical products, against a year ago, according to an official statement. The rate of inflation based on the WPI Food Index increased marginally from 8. 7% in March to 8. 9% in April.
The latest numbers come close on the heels of retail inflation rising to a near-eight year high of 7. 8% in April due to surging prices of food and fuel. Economists expect more interest rate increases by the Reserve Bank of India (RBI) in the coming months to cool runaway inflation. The central bank has already raised rates by 40 basis points. The WPI data showed fuel and power inflation at 38. 7% in April. Wheat prices rose an annual 10. 7%, vegetables by 23. 2%, manufactured products by 10. 9%, highlighting the price pressures across the board.