According to a statement released by the Ministry of Statistics and Programme Implementation, Consumer Price Index (CPI) for April 2018 stood at 4.48 percent, reversing the last three months declining trend. The Wholesale Price Index (WPI) was also up, touching a four-month high of 3.18 percent. Also Read: April WPI Inflation Hits 3-Month High Of 3.18%; Food And Oil Prices Main Triggers
CPI measures the change in prices of consumer goods like food, clothing and other household goods. It helps the Reserve Bank of India (RBI) set interest rates to moderate inflation levels in the country.
For the month of April, general rural CPI was at 4.67 percent, while urban was at 4.42 percent, forming a combined CPI of 4.58 percent. In the month of March 2018, CPI stood at 4.28 percent with rural at 4.44 percent and urban at 4.12 percent.
When compared to the year-ago period, CPI was 2.99 percent in April 2017.
Inflation in the fruit group was 9.65 percent from 5.78 percent in the previous month. The vegetable segment, on the other hand, was lower from 11.7 percent in March to 7.29 percent.
Since the CPI in April has shown an upward movement in inflation, due to factors like increased fuel prices, the chances of the MPC (Monetary Policy Committee) considering an increase in its benchmark interest rate in the June monetary policy review is high. Inflation, however, can come under control in the coming months from a normal monsoon season.
Meanwhile, the country's 10-year bond yield saw a sharp rise sharply after the WPI numbers were released earlier today and closed at 7.82 percent.