NEW DELHI, Apr 17: The wholesale price-based inflation eased to a 29-month low of 1.34 % in March on easing prices of manufactured products and fuel items, even though food articles turned costly.
March is the 10th straight month when wholesale price index (WPI) based inflation has declined.
The inflation was 3.85 % in February and 14.63 % in March 2022.
Inflation in food articles, however, rose to 5.48 % in March as against 3.81 % in February.
”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 on Monday.
Inflation in wheat and pulses was 9.16 % and 3.03 %, respectively while in vegetables it was (-)2.22 %. Inflation in oilseeds was (-)15.05 % in March 2023.
Fuel and power basket inflation eased to 8.96 % last month from 14.82 % in February. In manufactured products, inflation was (-)0.77 % as against 1.94 %.
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 % in March from 6.44 % 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 %. It projected retail inflation to average 5.2 % in current fiscal year. (Agencies)
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