WPI Inflation Eases To 29-Month Low of 1.34% in March 2023 Vs 3.85% in February; 10th Consecutive Fall

Continuing its falling streak, India’s wholesale inflation in March 2023 declined for the 10th consecutive month. The Wholesale Price Index (WPI)-based inflation eased to its 29-month low of 1.34 per cent in March as compared with 3.85 per cent in February this year, according to the latest official data.

“Decline in the rate of inflation in March, 2023 is primarily contributed by fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber & plastic products, crude petroleum & natural gas and paper and paper products,” the commerce and industry ministry said in a statement on Monday.

The inflation had stood at 14.63 per cent in March 2022.

Wholesale inflation in food articles, however, rose to 5.48 per cent in March 2023 as against 3.81 per cent in February 2023.

Inflation in wheat and pulses was 9.16 per cent and 3.03 per cent, respectively while in vegetables it was (-)2.22 per cent. Inflation in oilseeds was (-)15.05 per cent in March 2023.

Fuel and power basket inflation eased to 8.96 per cent last month from 14.82 per cent in February. In manufactured products, inflation was (-)0.77 per cent as against 1.94 per cent.

The deceleration in WPI comes in line with the easing of March retail inflation. Consumer price index based retail inflation declined to a 15-month low of 5.66 per cent in March from 6.44 per cent in February.

In its monetary policy review earlier this month, the RBI cautioned that adverse climatic conditions are a risk to the future inflation trajectory and predicted milk prices to remain firm going into the summer due to tight demand-supply situation and fodder cost pressure.

The central bank also paused the interest rate hike, holding the benchmark rate at 6.50 per cent. It projected retail inflation to average 5.2 per cent in current fiscal year.

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