New Delhi: In March, India’s annual wholesale price inflation increased to 0.53%, marking the highest level in three months, showed government data.
The rise was primarily driven by higher prices of food items, particularly onions and potatoes, according to official data released on April 15.
The Wholesale Price Index (WPI)-based inflation had stood at 0.20% in February and 0.33% in January.
Potato prices surged by 52.96% and onion prices by 56.99% compared to the same period last year. Additionally, vegetable prices increased by 19.52%, pulses by 17.24%, and cereals by 9.04% year-on-year in March, as reported by the Ministry of Commerce and Industry.
Sunil Kumar Sinha, principal economist at India Ratings and Research, told Deccan Herald: “An uptick in the food inflation and a moderation in deflation of core and fuel items pushed the wholesale inflation to a three-month high in March 2024.”
WPI gauges fluctuations in the average price level of goods traded in bulk or at wholesale levels. It serves as a key indicator of inflation during the production and distribution phases of the economy.
WPI monitors price changes of goods before they reach the retail market, encompassing raw materials, intermediate goods, and finished products.
Policymakers, businesses, and analysts frequently rely on WPI data to track inflationary tendencies in the economy and to inform decisions based on wholesale market price trends.
Below is a chart illustrating how the WPI has changed over the last couple of decades.
