India's wholesale prices logged only modest hikes in April, another sign the central bank's bout with the tail-end of COVID-era inflation may be succeeding.

Capped by cooling fuel prices, India's wholesale price index (WPI) rose a scant 0.85% on year in April, cooling from the 2.05% rate recorded in March, reported the Ministry of Commerce and Industry (MCI) on Wednesday.

India's WPI primarily measures producer prices at the factory or farm gate, sold to intermediaries and distributors, before being sold to consumers.

The WPI is separate from the consumer price index (CPI), that measures prices at retail, faced by shoppers. However, the PPI is considered one precursor to the CPI, as retailers try to recoup higher producer prices, or pass on savings to consumers.

In April in India, wholesale fuel and power charges fell by 2.18% on year, while those of primary articles fell 1.44%.

In contrast, producer prices of manufactured products rose 2.62% on year.

The category "food articles" which includes only unprocessed foods, such as vegetables and meats, fell 0.86% on year in April, cooling after recent price spikes caused by bad weather.

Separately, earlier this week, the National Statistical Office reported India's (CPI) rose 3.16% on year in April, easing from the 3.34% on year rate recorded in March, and striking the lowest rate since July of 2019.

The Reserve Bank of India (RBI) has a target rate of inflation on the nation's CPI of 4%, plus minus 2%.

With India's reported inflation rates cooling in 2024 and 2025, the RBI cut its policy interest rate by 0.25% to 6.25% this year in February, and then 6% in April.

The next RBI policy meeting is slated for June 4 through June 6.