WPI inflation exceeds 8-year high of 7.39% in March

Wholesale price-based inflation hit an 8-year high of 7.39% in March due to rising crude oil and metal prices.

In addition, the lower base of March last year, when data were computed with lower response rates due to nationwide lockdowns, contributed to a spike in inflation in March 2021.

WPI inflation was 4.17% in February and 0.42% in March 2020.

This is the third straight month seen in Wholesale Price Index (WPI) based inflation.

The Ministry of Commerce and Industry said, “By March 2020, the annual rate of inflation for March 2021 was 7.39% (provisional).”

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

Food inflation in March was 3.24% as prices of pulses, fruits and paddy hardened.

In vegetables, the rate of (-) 5.19% price increase over the previous month was (-) 2.90%.

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

Inflation in the basket of fuel and electricity was 10.25% in March, 0.58% in February, mainly due to rising prices of petrol and diesel.

“Crude oil, petroleum products and basic metal prices increased significantly in March 2021. compared to the same month last year. Also, due to the nationwide lockdown, the WPI index for the month of March 2020 calculated with relatively low response Rate, ”the Ministry of Commerce said while releasing the data.

According to data released earlier this week, retail inflation hit a 4-month high of 5.52% in March.

The RBI in its monetary policy earlier this month kept policy rates unchanged and said it would maintain a monetary policy policy to support growth and maintain inflation at targeted levels.

Retail inflation was 5.2% in the June quarter.