India’s wholesale price inflation hits an 8-month high of 7.39% in March

The wholesale price index (WPI) grew 4.17 per cent in February and by 2.51 per cent in January, data released by the ministry of commerce and industry showed.

During the month, the prices of crude oil, petroleum products and basic metal substantially increased in March 2021 compared to the corresponding month of the previous year. 

Also, due to nationwide lockdown, the WPI index for the month of March 2020 (120.4) was computed with relatively low response rate. 

Inflation rate for the `primary articles’ group, which has a weight of 22.62 per cent in the wholesale price index, increased by 0.55 per cent in March 2021 as prices of crude petroleum and natural gas, non-food articles and minerals increased in March 2021 compared to February 2021. Prices of food articles declined in March 2021 compared to February 2021.

Inflation rate for the `fuel and power’ group (weight of 13.15 per cent in WPI) increased by 5.28 per cent in March 2021 as the prices of mineral oils increased in March 2021 compared to February 2021. Prices of coal, however, declined in March 2021 while prices of electricity remained unchanged.

Inflation rate for the `manufactured products’ group (weight of 64.23 per cent) increased by 1.27 per cent in March 2021 as per provisional estimates. 

Out of the 22 groups of `manufactured products’, 16 groups, which include manufacture of furniture, motor vehicles, trailers and semi-trailers, machinery and equipment, electrical equipment, computer, electronic and optical products, fabricated metal products (except machinery and equipment), basic metals, other non-metallic mineral products, rubber and plastics products. pharmaceuticals, medicinal chemical and botanical products; chemicals and chemical products, paper and paper products, wood and of products of wood and cork, wearing apparel, textiles and food products, have shown increae in prices in March 2021 compared to February. whereas five groups, including manufacture of other manufacturing, other transport equipment, printing and reproduction of recorded media, leather and related products, tobacco products have witnessed decrease in prices in March 2021 as compared to February 2021, while the manufacture of beverages remain unchanged in March 2021 compared to February 2021.

Inflation rate for the `food index’ consisting of 'food articles'  from primary articles group and 'food products' from manufactured products group, have increased in March 2021. The rate of inflation based on WPI Food Index (weight of 24.38 per cent in WPI) increased from 3.31 per cent in February 2021 to 5.28 per cent in March 2021.

Inflation rate based on the revised wholesale price index for 'All Commodities' (Base: 2011-12=100) stood at 2.51 per cent.