RAS question
What was the rate of India's Wholesale Price Index (WPI) inflation in April 2026, which touched a 42-month high mainly driven by a sharp spike in fuel and power prices?
Correct answer: (C) 8.3 percent.
India's Wholesale Price Index inflation stood at 8.3 percent in April 2026, reaching a 42-month high mainly because of a sharp rise in fuel and power prices.
Explanation
The Press Information Bureau's April 2026 release reported annual inflation based on the All India Wholesale Price Index at 8.3 percent, up from 3.88 percent in March and the highest level in 42 months. The rise reflected input-cost pressures as prices increased for mineral oils, crude petroleum and natural gas, basic metals, manufactured products and non-food articles. Fuel and power was the main driver: annual inflation in this group rose from 1.05 percent in March to 24.71 percent in April, while its monthly index change was 18.22 percent. Retail inflation based on the Consumer Price Index was 3.48 percent at the same time, so it should not be confused with the wholesale inflation rate.
Why the other options are wrong
- (A) 3.48 percent was the retail inflation rate based on the Consumer Price Index, not the April 2026 inflation rate based on the Wholesale Price Index.
- (B) 6.5 percent was not the annual Wholesale Price Index inflation rate reported for April 2026; the Press Information Bureau reported it at 8.3 percent.
- (D) 10.2 percent overstates the April 2026 Wholesale Price Index inflation rate; the Press Information Bureau reported 8.3 percent.
Concept
When studying economic developments for RAS, it is important to distinguish between the Wholesale Price Index and the Consumer Price Index and to relate inflation indicators to price trends in fuel, inputs and manufactured goods.