Wholesale inflation hits three-month high of 0.53% in March
New Delhi: Wholesale inflation in the country rose marginally to three-month high of 0.53 per cent in March compared to 0.20 per cent in the preceding month due to increase in prices of vegetables, potato, onion and crude oil.
The Wholesale Price Index (WPI)-based inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent. The inflation in March 2023 was 1.41 per cent.
“The annual rate of inflation based on all-India Wholesale Price Index (WPI) number is 0.53 per cent (provisional) for the month of March, 2024 (over March, 2023),” the commerce and industry ministry said in a statement on Monday.
Food inflation moved up marginally to 6.88 per cent in March from 5.42 per cent in the same month a year ago, data showed. Inflation in vegetables was 19.52 per cent, up from (- 2.39) per cent in the same month a year ago.
WPI for potato witnessed a jump of 52.96 per cent against a deflation of 25.59 per cent, while for onion 56.99 per cent as compared to (-) 36.83 per cent in March 2023.
The food inflation also shot up to a three-month high of 4.6 per cent in March 2024.
“The increase in the food inflation largely emanated from the cereal’s inflation which stood at a 12-month high of 9 per cent. The other items such as pulses and vegetables which are important for ordinary consumers’/households’ basket witnessed elevated inflation of 17.2 per cent and 19.5 per cent, respectively in March 2024,” India Ratings and Research Senior Director Sunil Kumar Sinha said.
However, core inflation continues to be in a deflationary mode with March print at (-) 1.1 per cent.
The data showed that inflation in the crude petroleum segment rose by 10.26 per cent in March this year against a deflation of 23.53 per cent in March 2023 due to hardening of crude prices globally.
Positive rate of inflation in March 2024 is primarily due to increase in prices of food articles, electricity, machinery & equipment and other manufacturing etc.
The prices of manufactured products also declined 0.85 per cent.
Meanwhile, retail inflation declined to a five-month low of 4.85 per cent in March mainly due to cooling food prices.
The Consumer Price Index (CPI)-based retail inflation was 5.09 per cent in February and 5.66 per cent in March 2023. Previously, CPI-based inflation was the lowest at 4.87 per cent in October 2023.
The inflation in the food basket was at 8.52 per cent in March, down from 8.66 per cent in February, according to the data released by the National Statistical Office (NSO) last week.
According to Rajani Sinha, Chief Economist- CareEdge Ratings, with the fading of a supportive base, it is anticipated that the WPI inflation will edge up in the upcoming months.
The recent increase in global commodity prices, particularly driven by higher Brent crude prices and a rise in industrial metal prices, is expected to add to upward pressures on WPI, Sinha said.
