Crisil Core Inflation Tracker: WPI inflation in March eases a notch

The fall in WPI inflation in March was led by a bigger slowdown in fuel inflation

After a two-month run-up, inflation based on the Wholesale Price Index (WPI)-based inflation cooled to 5.7 per cent in March from 6.6 per cent in February. Fuel and power was one of the largest contributors to the fall, with inflation for the category coming in 290 basis points (bps; 100 bps make a percentage point) lower at 18.2 per cent, followed by core (non-food, non-fuel) inflation, which fell 60 bps to 3.1 per cent. 

The decline in food inflation was minimal — down 44 bps to 4.4 per cent.  Both core inflation and CRISIL Core Inflation Indicator (CCII) — which