India's inflation rate declines to 8.66 per cent in April

India's annual rate of inflation based on the wholesale price index stood at 8.66 per cent (provisional) in April 2011 against 9.04 per cent (provisional) in the previous month and 10.88 per cent during the corresponding month of the previous year.

Build up of inflation during the financial year so far was 1.34 per cent against 1.76 per cent in the corresponding period of the previous year.

The official wholesale price index for 'all commodities' (having 2004-05 = 100 as the base) rose 1.3 per cent to 150.6 (provisional) in April 2011 from 148.6 in the previous month.

While the WPI inflation rate seems to have decelerated from the previous month, due mainly to a fall in food prices, the effects of rising inflation levels over the past few months have already percolated into the economy, resulting in higher costs for the manufacturing sector across the spectrum.

Nearly 54 per cent of companies have reported a rise in raw material costs while 64 per cent are facing rising logistics costs. And, for nearly 70 per cent of companies, labour costs have gone up.

The index for the `primary articles' group rose 2.2 per cent to 191.6 (provisional) in April 2011 from 187.4 (provisional) in the previous month.