Wholesale inflation cools to 5.7% in March even as food prices rise

Food inflation in WPI terms rose to 3.2% in March from 2.7% in the previous month

Wholesale Price Index (WPI)-based inflation declined by 0.8 percentage points to 5.7 per cent in March against 6.5 per cent the previous month, even as the food component saw a rise. 

From July, the inflation trajectory will to a large extent be decided by the southwest monsoon and expectations built on that. India Meteorological Department will provide its first prediction of the monsoon for 2017 on Tuesday. Private weather forecaster Skymet had predicted slightly below-normal rain.  Some economists said inflation, particularly food, faced upside risks. This would force the Reserve Bank of India (RBI) to continue holding the repo rate