WPI inflation hits 4-month high of 14.55% in March as crude oil prices rise

Wholesale price-based inflation rose to a four-month high of 14.55 per cent in March, mainly due to firming crude oil and commodity prices, although vegetable prices showed a easing of pressure. According to government data released on Monday, WPI inflation has remained in double digits for the 12th consecutive month starting April 2021.

The last time such a level of WPI was recorded was in November 2021, when inflation stood at 14.87 per cent.

WPI inflation stood at 13.11 per cent in February, as against 7.89 per cent in March last year.

Inflation in food articles during the month declined to 8.06 per cent from 8.19 per cent in February. Inflation rate of vegetables stood at 19.88 per cent as against 26.93 per cent in February.

“The high rate of inflation in March, 2022 is mainly due to disruption in global supply chain due to Russia-Ukraine conflict due to rise in prices of crude petroleum and natural gas, mineral oil, base metals etc.” The Ministry of Commerce and Industry said in a statement.

Inflation in manufactured goods stood at 10.71 per cent in March, as against 9.84 per cent in February.

In the fuel and power basket, the rate of increase during the month stood at 34.52 per cent.

Crude petroleum inflation rose to 83.56 per cent in March from 55.17 per cent in February.

Retail inflation rose to 6.95 per cent in March – the third consecutive month when the consumer price index has crossed 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 – the rate at which it lends short-term money to banks – unchanged at 4 per cent for the 11th time in a row to support growth.

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