Wholesale inflation dips to 4-month low of 1% on sharp fall in food prices

Wholesale inflation in March reduced to a four-month low of 1 per cent, down from February’s 2.3 per cent, thanks to a reduction in the rate of food inflation, according to the official data released on Thursday.
 

India’s wholesale inflation had crashed to 0 per cent in October and has been relatively volatile ever since. Economists said the low inflation had come amidst a low response rate, and was contrary to expectations of disinflation.
 

Deflationary pressure on manufactured product prices continued for the second consecutive month, and pulled down the overall Wholesale Price Index (WPI)-based inflation. In line with this,