India’s Wholesale Price Index (WPI) inflation rate increased to 0.53 per cent in March, as detailed in the official figures released by the Commerce and Industry Ministry on Monday. This rise in inflation can be attributed to the higher prices of food articles, electricity, crude petroleum, natural gas, machinery & equipment, and other manufacturing goods.
In February, the WPI inflation had decreased to 0.2 per cent from 0.33 per cent in January. In March, food inflation reached 4.65 per cent, up from 4.09 per cent in the previous month. Additionally, the core inflation rate, excluding fuel and food items, was at -1.2 per cent in March, slightly higher than the -1.3 per cent reported in February.
Recent data indicated that India’s consumer price inflation dropped to a five-month low of 4.85 per cent in March, providing some relief to households. This decline brings retail inflation closer to the Reserve Bank of India’s (RBI) mid-term target of 4 per cent, potentially paving the way for the central bank to consider reducing key interest rates to stimulate economic growth.
With CPI inflation at 5.09 per cent in February and 5.1 per cent in January, the downward trend in inflation rates could influence the RBI’s decision-making regarding monetary policy adjustments. As the economy navigates through these inflation figures, stakeholders will closely monitor any further developments in the coming months to assess the impact on various sectors.
