Photo used for illustration objective solely. A surge in cereal costs at a 12-month high enabled wholesale price inflation rise to a three-month high in March
| Photo Credit: Sushil Kumar Verma
India’s wholesale price inflation rose to a three-month high of 0.53% in March from 0.2% in February, with the meals index rising 4.65%, primarily led by cereals costs surging at a 12-month high tempo even because the inflation in paddy (11.7%), potato (53%) and onions (57%) accelerated.
Inflation in pulses and greens remained elevated on the wholesale stage, at 17.2% and 19.5%, respectively, as per the Wholesale Price Index (WPI). Fuel and energy in addition to manufactured merchandise continued to be in deflation mode, although the extent of price declines from a 12 months in the past moderated to about 0.8% in March.
On a month-on-month foundation, the WPI rose 0.4% — the primary such uptick in 4 months, with the meals index up 1.01% and first articles rising 0.9%. Manufactured merchandise and gasoline and energy classes had been up 0.21% and 0.06%, respectively. The Commerce and Industry Ministry additionally revised the WPI for January 2024, elevating the inflation price for that month to 0.33% from 0.27% estimated earlier.
Within meals articles, there was some aid on the wholesale stage from eggs, meat and fish, whose costs slid 1.86%. This is in distinction to retail costs which rose greater than 10% for eggs, and over 6% for meat and fish, final month. Milk inflation eased to 4.7% in March, from 5.5% in February, however wheat price rise virtually trebled from 2.34% in February to 7.43% final month.
“Positive rate of inflation in March, 2024 is primarily due to increase in prices of food articles, electricity, crude petroleum & natural gas, machinery & equipment and other manufacturing, etc.” the ministry mentioned in an announcement.
For the total 12 months 2023-24, wholesale costs remained in deflationary mode, averaging -0.7%, the bottom tempo of price rise since 2015-16, mentioned Sunil Kumar Sinha, senior director and principal economist and Paras Jasrai, senior analyst at India Ratings and Research. “While wholesale inflation in the fourth quarter averaged a one-year high of 0.4%, it was still good enough to provide succor to the corporates by keeping the input prices at moderate levels,” they famous.
However, with the flare up between Iran and Israel, and the rise in crude oil costs past $90 a barrel, the agency expects the primary quarter of 2024-25 to see a mean rise of 2.4% in wholesale costs.
“International commodity prices are showing signs of increased pressure. Going ahead, continued escalation in international crude oil prices, heat wave conditions impacting electricity demand and vegetable inflation, remain key causes of concern,” mentioned Bank of Baroda economist Sonal Badhan.
