The central bank expects oil prices averaging around $78 a barrel to stoke inflation by 30 basis points.
The index for Crude Petroleum & Natural Gas group rose by 2.4% to 82.1 (provisional) from 80.2 (provisional) for the previous month due to higher price of natural gas (4%) and crude petroleum (2%). Fruits grew costlier by 19.47%, and onion by 13.62%. The inflation rate for meat and fish inched up to 3.59 per cent as against 3.17 per cent in March, while inflation for vegetables segment was lower at 7.29 per cent in April compared to 11.7 per cent.
India's annual wholesale price inflation accelerated in April, helped by higher fuel and food product prices, government data showed on Monday. It touched a high of $78 this month.
Primary articles which have weightage of 22.62% in WPI, rose by 1.4 percent to 129.2 (provisional) from 127.4 (provisional) for the previous month.
According to government data released today, inflation in food articles was at 0.87 per cent in April 2018, as against a deflation of 0.29 per cent in the preceding month. Prices of high-speed diesel rose twice as fast at 13 per cent and petrol prices rose by 9.45 per cent, up from the 2.55 per cent rise seen in March.
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An increase in oil price of $10 a barrel could quicken inflation by about 1 percentage point and reduce economic growth by 0.2 to 0.3 percentage points, a senior finance ministry official told Reuters, before the release of the Monday's data.
The index for manufactured products (weight 64.23 per cent) for April 2018 rose by 0.3 per cent to 116.1 from 115.7 for the previous month.
The hardening of inflation, both retail and wholesale, comes weeks ahead of RBI's Monetary Policy Committee meet on June 4 and 5.
"Food prices remained largely flat with some increase in fruit prices and if monsoon plays out as expected, then the upside risks are likely to remain limited". Crude oil prices holding at current levels will fan inflation in Asia's third-largest economy.
India's annual wholesale price inflation picked up in October to a six.
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