Wholesale price inflation

Why is it in the news
  • As per government data, Wholesale price-based inflation rose for the second consecutive month to 3.18% in March on costlier food and fuel.
  • The Wholesale Price Index (WPI) based inflation was at 2.93 percent in February. It was 2.74 percent in March 2018.
More in the news
    • Food Articles:
      (1) Inflation in food articles hardened with steep rise in prices of vegetables during March 2019.
      (2) Inflation in food articles basket was 5.68% during March.
      • Vegetables inflation:
        (1) It was at 28.13% in March, up from 6.82% in the previous month.
        (2) However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February.
        • Fuel:
          (1) Inflation in ‘Fuel and power’ category also spiked to 5.41%, from 2.23% in February.
          • The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, had earlier this month cut interest rates by 0.25%.
          • Retail inflation accelerated to 2.86% in March from 2.57% a month ago, data released last week showed.
          • For April-September period, the RBI has projected retail inflation at 2.9-3%, mainly due to lower food and fuel prices as well as expectation of a normal monsoon.
        Source
        The Hindu.




        Posted by Jawwad Kazi on 16th Apr 2019
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