India’s April 2026 Inflation: CPI 3.48%, WPI 8.3%
Why in the news
A newspaper editorial argued that calm retail inflation hides heavy upstream cost pressure, since wholesale inflation has surged. It called the current price rise systemic, not transient.
Key facts
- CPI (April): 3.48%, a 13-month high, versus 3.4% in March.
- WPI (April): 8.3%, a 42-month high, versus 3.88% in March.
- CFPI (food): 4.2%, up from 3.87%.
- Estimated losses of oil marketing companies: about ₹30,000 crore a month since the conflict began.
- Rupee: roughly 8.5% slide in 2.5 months; India imports about 85% of its oil.
- The Centre doubled import duty on gold and silver to curb safe-haven flows, ease rupee pressure and narrow the current account gap.
What pushed WPI up
| Component | Year-on-year change |
|---|---|
| Petroleum and natural gas | +67.2% |
| Fuel and power | +24.71% |
Why the editorial worries
- Producers have absorbed costs so far; once they cannot, CPI may jump.
- Under-recoveries (cost of fuel minus its retail price) strain OMCs; Petroleum Minister Hardeep Singh Puri indicated the Centre may have little choice but to raise petrol and diesel prices, with knock-on effects on transport, food and services.
- Commercial LPG: the 19.2 kg cylinder up by ₹850-₹1,000 and the 5 kg canister by over ₹200, feeding food prices and hurting low-income users.
- Rupee fall drivers: bigger crude bill, capital outflows to dollar and gold, current account pressure, and risk aversion amid the U.S.-Israel-Iran conflict.
- RBI has limited room and may eventually raise the repo rate, despite growth worries.
Background
- CPI: retail inflation; headline measure is CPI (Combined) compiled by NSO under MoSPI, base year 2012; food and beverages carry the largest weight (about 45.86%).
- WPI: wholesale/producer prices, excludes services; compiled by the Office of the Economic Adviser, DPIIT, base 2011-12; weights roughly manufactured 64%, primary articles 22.6%, fuel and power 13.2%.
- The two diverge because they cover different stages, baskets, weights and pass-through lags.
- Flexible Inflation Targeting: Monetary Policy Framework Agreement 2015 and the RBI Act amendment of 2016.
- MPC: six members, three from RBI and three external appointed by the Centre; decides the repo rate by majority.
- A weaker rupee makes crude, edible oils, electronics and gold costlier, lifting input costs.
Exam angle
- Numbers: CPI 3.48%, WPI 8.3%, CFPI 4.2%.
- Target: 4% with plus or minus 2%.
- Related terms: under-recovery, current account deficit, safe-haven asset, OMC (IOC, BPCL, HPCL).