![]() "The expected trajectory of the WPI inflation, and its partial transmission into the CPI inflation going ahead, supports our view that there is negligible space for rate cuts to support growth, in spite of the growing uncertainty related to the surge in COVID-19 cases, localised restrictions and emerging concerns regarding migrants returning to the hinterland," Nayar added. Icra expects the headline and core WPI inflation to rise further over the next two months, peaking at around 11.0-11.5 per cent and 8-8.5 per cent, respectively in May 2021. "Moreover, the depreciation in the INR will push up the landed cost of imports, adding to the inflationary pressures for the WPI going forward," she said. Also, due to nationwide lockdown, the WPI index for the month of March 2020 was computed with a relatively low response rate. 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 ministry said while releasing the WPI data. "The prices of crude oil, petroleum products and basic metal substantially increased in March 2021 as compared to the corresponding month of last year. In manufactured products, inflation was 7.34 per cent. Inflation in the fuel and power basket was 10.25 per cent in March, against 0.58 per cent in February on higher fuel prices. In vegetables, the rate of price rise softened to (-) 5.19 per cent, against (-) 2.90 per cent in the previous month. In pulses, it was 13.14 per cent in March, while in fruits and paddy, inflation was 16.33 per cent and 1.38 per cent, respectively. Inflation in food articles in March was 3.24 per cent as prices of pulses, fruits and paddy hardened. Such a high level of WPI was last recorded in October 2012, when inflation was 7.4 per cent. "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. This is the third straight month of up-tick seen in the wholesale price index (WPI) based inflation. ![]()
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