The Business Bytes
NEW DELHI, APRIL 15, 2024 (TBB BUREAU): Wholesale inflation in the country surged to a three-month high of 0.53 per cent in March, up from 0.20% in the previous month, driven by increases in vegetable, potato, onion, and crude oil prices.
The Wholesale Price Index (WPI)-based inflation had been in negative territory from April to October before turning positive in November at 0.26 per cent. In March 2023, inflation stood at 1.41 per cent.
According to the commerce and industry ministry, “The annual rate of inflation based on all-India Wholesale Price Index (WPI) number is 0.53 per cent (provisional) for the month of March 2024 (over March 2023).”
Food inflation rose marginally to 6.88 per cent in March compared to 5.42 per cent a year ago, with vegetable inflation at 19.52 per cent (up from -2.39 per cent in March 2023). Prices for potato and onion witnessed significant jumps, with increases of 52.96 per cent and 56.99 per cent, respectively.
However, core inflation remained in a deflationary mode, registering at -1.1 per cent in March. Inflation in the crude petroleum segment soared by 10.26 per cent in March this year, compared to a deflation of 23.53 per cent in March 2023, driven by global crude price increases.
The positive inflation rate in March 2024 is primarily attributed to price increases in food articles, electricity, machinery & equipment, and other manufacturing sectors. Conversely, prices of manufactured products saw a decline of 0.85 per cent.
Meanwhile, retail inflation decreased to a five-month low of 4.85 per cent in March, primarily due to cooling food prices.
