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India's WPI Inflation Rises to 3.88% in March on Fuel, Gold Prices

India's wholesale price index (WPI) inflation accelerated to 3.88% in March, up from 2.13% in February, primarily driven by a sharp rise in fuel and power prices. The surge in the fuel group was led by a massive 36.16% jump in crude oil and gas prices, linked to the Middle East conflict, though partially offset by lower electricity costs. While overall food inflation remained constant, prices for vegetables like tomato and cauliflower increased, even as onion, potato, and pulses became cheaper. Meanwhile, consumer price index (CPI) inflation also rose to 3.4% in March, with gold and silver jewellery recording exceptionally high price increases.

Key Points: India's WPI Inflation Climbs to 3.88% in March 2024

  • WPI inflation rises to 3.88%
  • Fuel prices surge due to Middle East conflict
  • Food inflation holds steady at 1.85%
  • Gold and silver jewellery see massive price jumps
  • CPI inflation also increases to 3.4%
2 min read

India's WPI inflation edges up to 3.88 per cent in March

India's wholesale inflation rose to 3.88% in March, driven by higher fuel and gold prices, while food inflation remained steady. Get the latest data.

"The month-on-month WPI inflation in the fuel and power group went up by 4.13 per cent - Ministry of Statistics"

New Delhi, April 15

India's inflation rate, based on the wholesale price index, edged up to 3.88 per cent during March, compared to the same month of the previous year, primarily due to the increase in prices of crude oil and natural gas and manufactured products.

The WPI inflation was higher than the corresponding figure of 2.13 per cent recorded in February this year.

WPI food inflation remained constant at 1.85 per cent in March this year compared to the same month of the previous year.

The month-on-month WPI inflation in the fuel and power group went up by 4.13 per cent in March compared to February as crude oil and gas prices shot up by as much as 36.16 per cent during the month due to the Middle East conflict. However, this was offset to an extent by the decline in electricity costs by (-) 5.07 per cent, the figures showed.

The Food Index, consisting of foodgrains such as cereals and pulses as well as manufactured food products, have marginally decreased in March compared to February.

The WPI inflation in manufactured products increased by 0.88 per cent during the month, compared to the previous month, with 16 of the 22 products in the group recording an increase in prices while six posted a decline.

Meanwhile, the country's inflation rate, based on the new Consumer Price Index (CPI), went up to 3.4 per cent in March compared to the same month of the previous year, according to data released by the Ministry of Statistics on Monday.

The commodities that recorded the highest inflation during the month were silver jewellery which saw a 148.61 per cent jump in prices and gold jewellery which clocked a 45.92 per cent increase in prices,

Overall food inflation in March stood at 3.87 per cent, largely because vegetables such as tomato and cauliflower turned more expensive during the month. However, the prices of onion, potato and garlic recorded a double-digit decline during the month compared to the same month of the previous year, while pulses also turned cheaper. The prices of arhar and tur dropped by 9.56 per cent, while chickpea registered a 7.87 per cent fall in prices.

Sequentially, the inflation in March was a tad higher than 3.21 per cent in the previous month of February and the revised figure of 2.74 per cent for January this year, when the new series was launched.

- IANS

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Reader Comments

R
Rohit P
Crude oil prices up 36%! No wonder petrol and diesel prices are pinching. The Middle East conflict is causing ripple effects everywhere. The government needs to think long-term about energy security beyond just monthly inflation figures.
A
Aman W
Silver jewellery inflation at 148% and gold at 46%? That's insane! This isn't just inflation, this is a massive speculative bubble. People are buying it as a 'safe' asset, but at these prices, it's anything but safe. Be careful with your investments.
S
Sarah B
Reading this from an economic perspective, the increase in manufactured products (16 out of 22 items) is the more concerning structural issue. It suggests input cost pressures are being passed on. The RBI will have to keep a very watchful eye.
K
Karthik V
Tomato and cauliflower prices are seasonal, they'll come down. The good news is pulses and essential veggies are cheaper. The WPI number looks high but the breakdown shows a mixed picture. We should not panic based on one month's data.
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Nisha Z
Respectfully, while the data is presented, I feel the article misses the human angle. A 3.88% WPI increase might seem small, but for middle-class families already stretched thin, even a small rise in manufactured goods and fuel hurts the monthly budget significantly.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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