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17 April 2018, 02:06 | Vera Richards
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Wholesale price inflation in March slightly eased to 2.47 per cent helped by falling prices of food items, especially vegetables and pulses.
Lastly, dairy product prices fell at the latest GDT auction, dragged lower by an unexpected plunge in anhydrous milk fat. Retail inflation also slipped to a five-month low of 4.28 per cent in March on account of decline in food prices.
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On the basis of the Wholesale Price Index, inflation had quickened to 2.48% in February and to 5.11% in March past year.
For 2018, the economists decreased the median inflation estimate for the eleventh consecutive week, to 3.48%, from 3.53% in the previous survey. The index for "Manufacture of Wearing Apparel" sub-group declined by 0.9 per cent to 137.8 from 139.0 for the previous month due to lower price of woven apparel, except fur apparel, and knitted and crocheted apparel (1 per cent each). This was mainly driven by the sharp correction in prices of vegetables, he said. Inflation in the fuel and power basket, however, rose to 4.70 per cent in March from 3.81 per cent in February. Compared to March 2017, food prices were 1.1 per cent higher, while non-food and services prices rose by 1.2 per cent and 4.6 per cent, respectively.
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According to the data that the Ministry of Commerce & Industry released today, food articles showed deflation at 0.29 per cent in March as against a slight 0.88 per cent inflation in the preceding month.
However, if the firmness in the core inflation at the retail level continues, it will soon begin to reflect at the wholesale level as well, Sinha said. However, the price of petroleum coke and kerosene moved up.
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"We knew that poor weather was going to push fresh vegetable prices higher but we hadn't expected the 10.6 per cent increase that occurred in this subgroup".
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