New Delhi: The wholesale price-based inflation eased to a 29-month low of 1.34 percent in March on easing prices of manufactured products and fuel items, even though food articles turned costly. March is the 10th straight month when wholesale price index (WPI) based inflation has declined. The inflation was 3.85 percent in February and 14.63 percent in March 2022. Inflation in food articles, however, rose to 5.48 percent in March as against 3.81 percent in February.
"Decline in the rate of inflation in March 2023 is primarily contributed by fall in prices of basic metals, food products, textiles, non-food articles, minerals, rubber and plastic products, crude petroleum and natural gas and paper and paper products," the commerce and industry ministry said on Monday.
Inflation in wheat and pulses was 9.16 percent and 3.03 percent, respectively while in vegetables it was (-)2.22 percent. Inflation in oilseeds was (-)15.05 percent in March 2023. Fuel and power basket inflation eased to 8.96 percent last month from 14.82 percent in February. In manufactured products, inflation was (-)0.77 percent as against 1.94 percent. The deceleration in WPI comes in line with the easing of March retail inflation. Consumer price index-based retail inflation declined to a 15-month low of 5.66 percent in March from 6.44 percent in February.
In its monetary policy review earlier this month, the RBI cautioned that adverse climatic conditions are a risk to the future inflation trajectory and predicted milk prices to remain firm going into the summer due to tight demand-supply situation and fodder cost pressure. The central bank also paused the interest rate hike, holding the benchmark rate at 6.5 percent. It projected retail inflation to average 5.2 percent in the current fiscal year.
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