Wholesale and consumer inflation falls, industry production up 

India’s annual Wholesale Price Index (WPI) inflation for the month of April fell to 3.85% from 5.70% in March, while the annual Consumer Price Index (CPI) inflation for April fell to 2.99% from 3.81% in March. The annual Index of Industrial Production (IIP) for March rose 2.7% from 1.9% in Feb. The government has also changed the base year for IIP calculation to 2011-2012 from the earlier 2004-2005. Earlier Bank of America Merrill Lynch (BofA-ML) had forecasted that April CPI inflation is expected to slip to 3.2 per cent from 3.8 per cent in March, well within the RBI’s 2-6 per cent target. The global financial services major also said that food prices are likely to fall on good summer rabi harvest and this, in turn, is expected to bring CPI inflation down. According to Government data, retail inflation had jumped to a fivemonth high of 3.81 per cent in March, while inflation based on wholesale price index (WPI) slipped to 5.70 per cent. On RBI’s policy stance, the BofAML report had said that the central bank may go for a 25 bps rate cut in its August policy review. The global brokerage firm cited three reasons for an August rate cut — April inflation is likely to slip to 3.2 per cent, a receding El Nino could lead to a good monsoon and oil imported inflation fears are also receding.