WPI inflation rises to 7.23 per cent in April

India's annual rate of inflation, based on the wholesale price index, rose to 7.23 per cent in April 2012, from 6.89 per cent in the previous month, pushed higher by rising prices of food, fuel and manufactured goods.

While food and fuel prices have been firming up for more than a year now, manufacturing prices rose on the back of the recent spike in excise duty rates.

The inflation rate, which is higher than the comfort zone indicated by the Reserve Bank of India, may pose a fresh challenge for the financial sector regulator in its upcoming policy review in June.

Build-up of inflation in the financial year so far (beginning 1 April 2012) was 2.07 per cent against 1.74 per cent in the corresponding period of the previous year. India's WPI-based inflation was higher at 9.74 per cent during the corresponding month of the previous year.

The official wholesale price index for 'all commodities' (base: 2004-05 = 100) rose 2.1 per cent to 163.1 (provisional) during April 2012 from 159.8 (provisional) in the previous month.

The index for the `primary articles' group rose 4.7 per cent to 215.9 (provisional) in April 2012, from 206.3 (provisional) in the previous month.