India’s wholesale price index (WPI)-based inflation eased significantly to 0.85 per cent in April this year. The Ministry of Commerce and Industry said this in the data released today. The WPI inflation was at 2.05 per cent in March.

The data showed that the annual rate of inflation based on the WPI food index decreased to 2.55 per cent during the last month, from 4.66 per cent in the previous month. Primary Articles category contracted to 1.44 per cent in April, from 0.76 per cent in the previous month.

Meanwhile, the fuel and power category also witnessed deflation of 2.18 per cent, against growth of 0.2 per cent in March. In the manufactured products category, inflation dropped to 2.62 per cent from 3.07 per cent in the previous month.

The ministry added that the positive rate of inflation in April is primarily due to an increase in prices of the manufacture of food products, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and the manufacture of machinery and equipment.

Wholesale Price Index or WPI measures the change in prices of goods sold and traded in bulk by wholesale businesses with other companies. Unlike the CPI, which tracks prices of goods and services purchased by consumers, WPI tracks factory gate prices and retail prices.