March retail inflation number may reflect drop in wheat prices

But untimely rains could act as a dampener. Data shows that in Feb 2023 while WPI-wheat inflation dropped to 18.54%, CPI-wheat inflation for same month rose from 25.05% in Jan 2023 to 25.37% in Feb

A few weeks ago, in a press event, representatives of flour millers’ associations expressed the hope that softening wheat flour (atta) prices in consumer markets would start getting reflected in consumer price index (CPI) numbers from March onwards, and that could provide relief to the government, which is battling high prices.

However, the recent rain in major wheat-growing areas could put paid to their hopes. The data shows between March 11 and March 23, when the unseasonal downpour started stampeding wheat crops in Madhya Pradesh, Uttar Pradesh, Punjab, and Haryana, prices of good-quality wheat rose around Rs 50 per quintal while