Inflation dips to 2.47 per cent in March

Inflation dips to 2.47 per cent in March

The Wholesale Price-Indexed (WPI) inflation of the country slipped marginally to 2.47 per cent in March from 2.48 per cent reported for the previous month because of falling prices of food items, especially vegetables and pulses.

On the other hand, the index for "Manufacture of Textiles" sub-group rose by 0.4 per cent to 114.1 from 113.7 for the previous month due to higher price of viscose yarn, knitted and crocheted fabrics, synthetic yarn and weaving and finishing of textiles (1 per cent each).

According to the Commerce Ministry data, the WPI inflation in March 2017 was more than double at 5.11 per cent.

"Moreover, while average petrol prices at the pumps dropped 1.4 per cent between February and March this year, that was only a touch bigger than the 0.8 per cent drop seen between the same months in 2017".

Meanwhile, the WPI inflation for January 2018 has been revised upwards to 3.02 per cent from a level of 2.84 percent (provisional) earlier. However, rising crude oil prices pushed up inflation in the "fuel and power" basket to 4.70 per cent in March from 3.81 per cent in the previous month.

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In monthly terms, it was the first month that recorded deflation after eight months in a row of CPI growth and only the third time in the past 12 months that consumer prices shrank. In the same month previous year, the WPI inflation was 5.11 per cent. This is different from the consumer price index-based inflation, which reflects price changes in the retail market.

"A significant decline in the inflation of food articles including cereals and pulses is an indicator that the government has rightly focused agriculture sector", Anil Khaitan, President, PHD Chamber was quoted as saying in a statement. The wholesale price index was 5.11% in March 2017.

Moreover, the retail inflation eased to 4.28 per cent, a five-month low in March, but remained above RBI's medium-term target, supporting views that monetary policy is likely to remain unchanged at the next review in early June.

Manufactured products inflation was at 3.03 per cent, lower than 3.22 per cent in the same month a year ago.

In contrast, the overall vegetable prices in March deflated (-) 2.70 percent, against a fall of (-) 0.50 percent in the same month a year ago. Find us on Facebook too!

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