WPI inflation spikes to over 8-year high of 7.39% in March: Details here

The wholesale price-based inflation shot up to over 8-year high of 7.39 per cent in March on rising crude oil and metal prices

Press Trust of India New Delhi

The wholesale price-based inflation shot up to over 8-year high of 7.39 per cent in March on rising crude oil and metal prices.

Also, the low base of March last year, when the data was computed with a low response rate due to the nationwide lockdown, contributed to a spike in inflation in March 2021.

The WPI inflation was 4.17 per cent in February and 0.42 per cent in March 2020.

This is the third straight month of up-tick seen in the wholesale price index (WPI) based inflation.

"The annual rate of inflation stood at 7.39 per cent (provisional) for the month of March 2021 over March 2020," the Commerce and Industry Ministry said.

Such a high level of WPI was last recorded in October 2012, when inflation was 7.4 per cent.

Also Read

OPEC+ panel discusses weaker oil demand outlook, Libya supply rise: Report

Domestic LPG to be cheaper by Rs 10 per cylinder from April 1

Oil prices slide on swelling Libya output, coronavirus infections

Oil rises 4% after Trump falsely claims victory in tight US election

Oil prices drop for fifth straight day after US inventories rise

Q4 results: Metals & mining firms riding high on the commodity price rally

Q4 results preview: Quick economic recovery to aid banks' profits

Q4 earnings: Capital goods industry to benefit from govt's infra push

Low base, recovery in demand to drive up auto firms' Q4 earnings

Cement firms set for blockbuster quarter; realty to boost top line growth

Inflation in food articles in March was 3.24 per cent as prices of pulses, fruits and paddy hardened.

In vegetables, the rate of price rise was (-) 5.19 per cent, compared to (-) 2.90 per cent in the previous month.

Inflation in pulses was 13.14 per cent in March, while in fruits it was 16.33 per cent.

Inflation in the fuel and power basket was 10.25 per cent in March, against 0.58 per cent in February, mainly on account of rising prices of petrol and diesel.

"The prices of crude oil, petroleum products and basic metal substantially increased in March 2021 as compared to the corresponding month of last year. Also, due to nationwide lockdown, the WPI index for the month of March 2020 was computed with a relatively low response rate," the commerce ministry said while releasing the data.

Retail inflation, as per data released earlier this week, rose to a 4-month high of 5.52 per cent in March.

The RBI in its monetary policy earlier this month kept policy rates unchanged and said it will maintain an accommodative monetary policy stance to support growth and keep inflation at the targeted level.

It projected retail inflation at 5.2 per cent in the June quarter.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Apr 15 2021 | 12:45 PM IST

Explore News