India’s Consumer Price Inflation Figure surged to 10.36 Per Cent in the Month of April

India’s consumer price inflation (CPI) surged to 10.36 per cent in the month of April 2012. The CPI figure for the month of February and March stood at 9.47 percent and 8.22 percent respectively. The rising figure is largely driven by a rise in prices of vegetables, eggs and fish products.

Inflation as measured by India’s benchmark wholesale price index (WPI) rose to 7.23 percent in April 2012 as prices of food, fuel and manufacturing items went up considerably.

The Reserve Bank of India, which unlike other central banks uses mainly the wholesale price index for monitoring inflation, slashed policy rates by a steeper-than-expected 50 basis points last month to boost a sagging economy.

The unrelenting inflation has left the RBI with very little room to further slash the credit rates. The central bank had cut down the policy rates by 50 basis points in its quarterly review of monetary policy in April 2012. The move was aimed at giving a boost to the flaccid state of economy.

Consumer Price Index (CPI)

The annual consumer price index (CPI) was brought out into the practice in February 2012. It measures retail prices of major food groups, fuel, clothing, housing and education across rural and urban India.