After 17 months of contracting, the wholesale price index (WPI) has finally entered a positive zone.
The annual rate of inflation, based on monthly WPI, stood at 0.34 percent for April, 2016 as compared to -0.85 percent for the previous month and -2.43 percent during the corresponding month of the previous year.
The WPI comprises a basket of primary articles, fuel and power, and manufactured products which has the most weightage of nearly 65 percent.
The primary articles index rose by 2.1 percent to 249.3 from 244.1 for the previous month. Prices of egg, fish and wheat were the only falling metrics in this group.
The index for fuel and power rose by 1.7 percent to 175.4 from 172.4 for the previous month. Higher prices of aviation turbine fuel and oil and petrol contributed to the rise.
Manufactured products index increased by 0.8 percent to 155.0 from 153.7 for the previous month.
Ashutosh Kajoria of Federal Bank said bond markets have long stopped taking cues from WPI. Consumer price index is what they go by, Kajoria said.
“We won’t be seeing any change in bond markets, maybe a couple of basis point this way or that.”