Published: Tue, April 17, 2018
Business | By Kate Woods

Deflating food prices softens India's WPI inflation

Deflating food prices softens India's WPI inflation

Mr Brown highlighted BRC Shop Price Index data, which showed food prices dropping at their fastest rate in 18 months in March, which could have a larger impact on the inflation figure alongside fuel costs.

On a sequential basis, expenses on primary articles, which constitute 22.62 percent of the WPI's total weightage, inched up by 0.24 percent, from an increase of 0.79 percent in February.

INFLATION is expected to have held steady in March as a drop in food and fuel prices was offset by higher airfares around the earlier Easter holidays.

Nayar said the rise in global crude petroleum and natural gas prices, as well as the recent depreciation of the rupee against the dollar, is likely to push the WPI inflation up in April.

More news: Broncos releasing RB CJ Anderson

The build up in inflation rate in the financial year so far was 2.47% compared to a build up rate of 5.11% in the corresponding period of the previous year.

According to the Commerce Ministry data, the WPI inflation in March 2017 was more than double at 5.11 percent.

The overall prices have fallen, as food articles have turned cheaper in the last few months.

Wholesale food prices in March fell 0.07% year-on-year, compared with a 0.07% rise a month earlier. However, the price of ragi (3%), jowar and fish-marine (2% each) and peas/chawali, moong, betel leaves, wheat, paddy and pork (1% each) moved up. In February 2018, inflation was at 2.48 per cent.

More news: Nintendo Switch Getting Classic Sega Games This Summer

Retail inflation, as per data released last week, slipped to a five-month low of 4.28 percent in March on account of decline in food prices.

The ease in inflation was attributed to falling prices of food items, particularly vegetables and pulses.

Sunil Kumar Sinha, Director, Public Finance and Principal Economist, India Ratings said: "Unlike the retail inflation which dipped by 16bp in March 2018 over the previous month, the wholesale inflation remained flat".

Martin Beck, lead United Kingdom economist at Oxford Economics, said: "Although we think that 2018 as a whole will see a steady decline in price pressures, March may have proved an exception to that".

More news: Unidentified victim may be from Odisha, probe on — Surat minor rape

The reproduction of the story/photograph in any form will be liable for legal action.

Like this: