The central government data on Monday showed that Wholesale inflation in March eased to 1.34 per cent compared to 3.85 per cent recorded in February. The Ministry of Commerce and Industry in a release said that the annual rate of inflation based on all India Wholesale Price Index (WPI) numbers is 1.34 per cent (Provisional) for March against 3.85 per cent in February. The latest Wholesale Price Index (WPI) inflation figure is the lowest in 29 months.
The ministry said that the decline in the rate of inflation in March is primarily contributed by the fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber and plastic products, crude petroleum and natural gas, and paper and paper products.
Retail inflation fell to 5.66 per cent in March, according to the data from the Ministry of Statistics and Programme Implementation released last week on Wednesday. The country’s rural inflation in March stood at 5.51 per cent, while urban inflation was at 5.89 per cent. At 5.66 per cent, the latest CPI inflation print is the lowest in 15 months, at 5.66 per cent in December 2021.
Also Read: India’s Retail Inflation Moderates To 5.66 Per Cent In March From 6.44 Per Cent In February
The month-over-month change in the WPI index in March remained unchanged as compared to February 2023, the ministry noted.
Month Over Month Change In Major Groups Of WPI:
- Primary Articles (Weight 22.62 per cent): The index for this group increased by 1.16 per cent to 175.0 (provisional) in March from 173.0 (provisional) in February. Prices of Minerals (8.16 per cent), Crude Petroleum & Natural Gas (4.61 per cent) and Food (1.13 per cent) increased in March 2023 as compared to February. Prices of Non-food Articles declined by 2.05 per cent in March as compared to February.
- Fuel And Power (Weight 13.15 per cent): The index for this major group declined by 1.26 per cent to 156.8 (provisional) in March from 158.8 (provisional) in February. Prices of coal (0.07 per cent) increased in March as compared to February. Prices of mineral oils and electricity declined by 0.24 per cent and 4.95 per cent respectively in March.
- Manufactured Products (Weight 64.23 per cent): The index for this major group declined by 0.28 per cent to 141.2 (provisional) in March from 141.6 (provisional) in February. Out of the 22 NIC two-digit groups for manufactured products, 12 groups have witnessed an increase in prices while 9 groups have witnessed a decrease in prices, and one group remained unchanged.
- WPI Food Index (Weight 24.38 per cent): The Food Index consisting of ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group has increased from 171.3 in February to 172.1 in March. The rate of inflation based on the WPI Food Index decreased from 2.76 per cent in February to 2.32 per cent in March.
The commerce ministry said that the WPI for March 2023 have been compiled at a weighted response rate of around 87.0 per cent, while the final figure for January, 2023 is based on a weighted response rate of around 95.0 per cent. The provisional figures of WPI will undergo revision as per the revision policy of WPI. WPI for the month of April will be released on May 15, 2023.
Earlier this month on April 6, the RBI’s Monetary Policy Committee in a surprise move left the repo rate unchanged at 6.5 percent despite expectations of a 25-basis-point rate hike.