WPI-Based Inflation Hits 4-Month High Of 14.55% In March On Rising Fuel, Food Prices

This is for the 12th consecutive month beginning April 2021 that WPI inflation has remained in double digits, according to commerce ministry data

Last month, WPI inflation was 13.11 per cent on hardening of prices of crude oil and non-food items, whereas crude petroleum spiked to 55.17 per cent. Image: Getty

New Delhi: India’s wholesale price index-based (WPI) inflation in March rose to a four-month high of 14.55 per cent in March from 13.11 per cent in February, according to the data released by the commerce ministry on Monday.

The surge in WPI inflation is based on soaring edible oil prices, higher fuel rates, and surging food prices.

Last month, WPI inflation was 13.11 per cent on hardening of prices of crude oil and non-food items, whereas crude petroleum spiked to 55.17 per cent.

The government has said that the high rate of inflation in March is primarily due to rise in prices of crude petroleum, natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict. News agency ANI has shared the tweet. 

The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict: Government of India

— ANI (@ANI) April 18, 2022

According to a report by the PTI, this is for the 12^th consecutive month beginning April 2021 that WPI inflation has remained in double digits. The last time such a level of WPI was recorded was in November 2021, when inflation was 14.87 per cent. In February, WPI inflation was at 13.11 per cent, while in March last year, it was 7.89 per cent.

Inflation in food items eased to 8.06 per cent, from 8.19 per cent in February. Vegetable inflation was 19.88 per cent, against 26.93 per cent in February.

In a statement, the Commerce and Industry Ministry said, “The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc. owing to disruption in the global supply chain caused by the Russia-Ukraine conflict.”

Inflation in manufactured items was 10.71 per cent in March, against 9.84 per cent in February, while in the fuel and power basket, the rate of price rise was 34.52 per cent during the month.

Inflation in crude petroleum spiked to 83.56 per cent in March, from 55.17 per cent during February.

Retail inflation spiked to 6.95 per cent in March, the third consecutive month that the consumer price index has breached the RBI's tolerance limit of 6 per cent, data released last week showed.

The Reserve Bank earlier this month kept its key repo rate, at which it lends short-term money to banks, unchanged for the 11th time in a row at 4 per cent, to support growth.