WPI inflation eases to 2.47% in March

The country’s wholesale price inflation came a tad lower at 2.47% in March from 3.02% in the previous month on the back of lower prices of food and vegetables.

Food articles showed a deflation at 0.29% in March, deflation in pulses was 20.58%, in vegetables 2.70%, wheat 1.19% and egg, meat and fish 0.82%. There was 0.88% inflation in food items in February.

Only onion and potato in vegetable segment witnessed inflation of 42.22% and 43.25%, respectively. Manufactured products inflation was at 3.03% even as sugar prices fell 10.48% during the month. The price rise in the fuel and power basket was at 4.70% in March from 3.81% in January due to rising crude prices.

India Inc hailed the ease of inflation and the government’s supply-side response.

“Consistent decline in WPI indicates that the government has undertaken effective measures at the ground to address the supply side problems of the economy during the last few years. A significant decline in the inflation of food articles including cereals and pulses is an indicator that the government has rightly focused on the agriculture sector,” said PHD Chamber of Commerce.

Earlier, the data showed retail inflation too slipped to a five-month low of 4.28% in March on account of decline in food prices providing comfort to the RBI for its next monetary policy review.