WPI inflation spikes to over 8-year high of 7.39% in March: Details here

The wholesale price-based inflation shot up to over 8-year high of 7.39 per cent in March on rising crude oil and metal prices

Topics

WPI inflation | WPI

The wholesale price-based inflation shot up to over 8-year high of 7.39 per cent in March on rising crude oil and metal prices.

Also, the low base of March last year, when the data was computed with a low response rate due to the nationwide lockdown, contributed to a spike in inflation in March 2021.

The WPI inflation was 4.17 per cent in February and 0.42 per cent in March 2020.

This is the third straight month of up-tick seen in the wholesale price index (WPI) based inflation.

“The annual rate of inflation stood at 7.39 per cent (provisional) for the month of March 2021 over March 2020,” the Commerce and Industry Ministry said.

Such a high level of WPI was last recorded in October 2012, when inflation was 7.4 per cent.

Inflation in food articles in March was 3.24 per cent as prices of pulses, fruits and paddy hardened.

In vegetables, the rate of price rise was (-) 5.19 per cent, compared to (-) 2.90 per cent in the previous month.

Inflation in pulses was 13.14 per cent in March, while in fruits it was 16.33 per cent.

Inflation in the fuel and power basket was 10.25 per cent in March, against 0.58 per cent in February, mainly on account of rising prices of petrol and diesel.

“The prices of crude oil, petroleum products and basic metal substantially increased in March 2021 as compared to the corresponding month of last year. Also, due to nationwide lockdown, the WPI index for the month of March 2020 was computed with a relatively low response rate,” the commerce ministry said while releasing the data.

Retail inflation, as per data released earlier this week, rose to a 4-month high of 5.52 per cent in March.

The RBI in its monetary policy earlier this month kept policy rates unchanged and said it will maintain an accommodative monetary policy stance to support growth and keep inflation at the targeted level.

It projected retail inflation at 5.2 per cent in the June quarter.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor