India's WPI inflation stood at 0.85% in April 2025, while CPI eased to 3.16%. Reduced fuel prices impacted inflation. The RBI projected inflation to be controlled at around 4%.
WPI: India witnessed a significant decline in Wholesale Price Index (WPI) inflation in April 2025. The rate stood at 0.85%, considerably lower than March's 2.05%. This decrease is primarily attributed to reduced prices of petrol, diesel, electricity, and raw materials. However, prices of manufactured goods remained relatively stable.
Understanding Inflation
The Wholesale Price Index (WPI) reflects the prices at which companies buy and sell goods to each other. This indicator provides crucial insights into the country's supply and demand dynamics. It helps understand how prices are changing in the market and their impact on the common man.
Decline in Retail Inflation
Regarding Consumer Price Index (CPI) inflation, April 2025 saw a rate of 3.16%. This is the lowest figure in the past five years. Falling food prices in recent months contributed to this relief. Prices of vegetables, pulses, fruits, meat, and grains have decreased. Even personal care products showed a price reduction. Despite intense heat, a good harvest helped keep prices under control.
RBI's Prediction: Inflation Under Control
The Reserve Bank of India (RBI), in its monetary policy meeting, projected retail inflation to remain around 4% in fiscal year 2025-26, assuming a normal monsoon. Notably, inflation is expected to be 3.6% between April and June, significantly lower than the previous estimate of 4.5%. This suggests that inflation is expected to remain under control in the coming months.
The RBI also released a quarterly inflation forecast:
- April-June quarter: 3.6% inflation.
- July-September: A slight increase to 3.9%.
- October-December: A decrease to 3.8%.
- January-March 2026: A potential rise to 4.4%.
Positive Implications for the Common Man?
These inflation figures directly impact the common man's finances. If inflation remains controlled, prices of goods and services will not rise significantly. This will positively impact purchasing power. Specifically, the reduction in food and daily essential prices can provide considerable relief to the common population.
