Latest WPI Update : 0.2% Increase in WPI is recorded, last month it was 4.49%

Latest WPI Update : 0.2% Increase in WPI is recorded, last month it was 4.49% and now it has moved at the highest level in March as of last 3 Months.

On April 12, the Ministry of Statistics and Program Implementation released its Wholesale Price Index — prices of manufactured products including food prices, Crude Oil, Natural Gas showed a high - Inflation compared to last year.

Highest of the last 3 Month

WPI inflation has moved at the highest level in March compared to last 3 months. An Increment of 0.2% was seen in WPI inflation in March as compared to February. In February annual WPI inflation was 4.49% which has now increase by 0.2% to 4.51%.

The data of WPI came when the retail inflation rate has fallen to its lowest rate of 4.85% as compares to the last 10 months. Monthly retail inflation rate has been above RBI's expected target of 4% for 54 consecutive months. Retail inflation rate remains at the same pace as before at 4.85%.

High Inflation in food and Vegetable

According to the Ministry of Commerce, the highest inflation rate in the WPI index was seen in the food and primary article. Heavy inflation was seen in food and vegetables too, especially in Onion and Potatoes, in March inflation of 56.99% was recorded in Onion or 52.96% inflation was seen in Potato. 

Compared to the same month last year, a decline of 36.83% was seen in the wholesale prices of onion and a decline of 25.59% was recorded in the prices of potato. Similarly, Crude Oil witnessed a decline of 1.19% in March 2023 and an increase of 4.87%. Wholesale Prices of Fuel in india in February 2024 declined to 1.59% and in March 2024 decline 0.77% is noted.

Food Shortage till the Coming Kharif season 

Industry representative's  statement is that - this type of inflation will continue in Onion till the coming procurement ( Kharif ) seasons. In addition to this, it is also expected that food shortage will be seen in India, due to which the supply of Onion may be slow down even the export of onion can also be stopped. In the current situation, Ministry is trying its best to maintain stable prices in the supply of bulk vegetable.

Statement of Senior Economist 

"With the fading of a supportive base, it is anticipated that the WPI inflation will edge up in the upcoming months. The recent increase in global commodity prices, particularly driven by higher Brent crude prices and a rise in industrial metal prices, is expected to add to upward pressures on WPI," said Rajani Sinha, Chief Economist at CareEdge.

"However, it's worth noting that expectations of a normal monsoon with waning El Nino conditions and a recovery in rabi sowing paint a positive outlook for agricultural production and, consequently, food inflation. This is anticipated to cushion the WPI prints to a certain extent," Sinha added.