Wholesale price inflation slows down to 2.47% in March

Image for representation

Image for representation

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.04 percent, the yield on the long-term 30-year note almost steadied at 0.70 percent and the yield on short-term 2-year remained flat at -0.15 percent by 04:50 GMT.

With this, the rate of inflation based on WPI Food Index consisting of "Food Articles" from Primary Articles group and "Food Product" from Manufactured Products group decreased from 0.07% in February, 2018 to (-) 0.07% in March, 2018.

Prices of the other major group under the WPI, manufactured products, which comprise almost 64.23 per cent of the index, recorded a 3.03 per cent rise.

India's annual wholesale price inflation slightly eased in March to 2.47%, a nine-month low, owing to a fall in prices of vegetables and other food and beverages, data from Ministry of Commerce & Industry showed on Monday.

Deflation in vegetables was 2.70 per cent, pulses (20.58 per cent) and wheat (1.19 per cent) in March.

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The harmonised CPI figure, calculated by NSI for comparison with European Union data, recorded a decrease of 0.2 per cent on a monthly basis, while the annual harmonised CPI in March showed a 1.9 per cent increase.

Index for "Crude Petroleum & Natural Gas" group declined by 0.5 percent to 80.2 (provisional) from 80.6 (provisional) for the previous month due to lower price of crude petroleum (1%).

Food prices were 0.3 per cent lower compared to February and services prices shrank by 0.4 per cent, while non-food prices were down by 0.2 per cent. However, the price of raw silk, mesta and hides, sunflower, soyabean, fodder, raw wool, coir fibre and raw rubber all moved up.

Inflation in "fuel and power" basket, however, rose to 4.70 per cent in March from 3.81 per cent in the previous month. Petrol prices grew 2.55 percent in March from 43.38 percent a year ago. It revised downwards forecast for retail inflation to 4.7-5.1 per cent for April-September and 4.4 per cent for October-March. However, the March 2018 inflation is higher than 3.89 per cent recorded in the same month previous year.

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