India’s wholesale price inflation climbs to 14.55% in March

The high cost of “fuel and electricity” due to the Russian-Ukrainian war as well as those of primary items increased IndiaMarch 2022 wholesale inflation at a 4-month high.

As a result, the annual inflation rate, based on wholesale prices, rose to 14.55% last month from 13.11% in February 2022.

Similarly, on an annual (YoY) basis, the Wholesale Price Index (WPI) data provided by the Ministry of Trade and Industry showed an exponential increase last month compared to March 2021, when it stood at 7.89%.

“The annual rate of inflation is 14.55% (provisional) for the month of March 2022 (compared to March 2021) compared to 7.89% in March 2021,” the ministry said in its review of “Numbers of ‘wholesale trade index’. Prices in India’ for March.

“The high inflation rate in March 2022 is mainly due to higher prices for crude oil and natural gas, mineral oils, base metals, etc., due to disruption in the global supply chain caused by the Russian-Ukrainian conflict”.

Additionally, the month-over-month change in the WPI for March 2022 was 2.69% from February 2022.

According to the data, the primary articles segment, which has one of the highest weights in WPI, grew at a faster rate of 15.54% in March, compared to 13.39% reported for February 2022.

In the fuel and electricity segment, which has a weighting of 13.15%, the rise in inflation was recorded at 34.52% compared to 31.5% in February 2022.

The cost of manufactured goods, which has a weighting of 64.23%, rose at a faster rate of 10.71% versus 9.84%.

Similarly, the growth rate of the WPI food index, which is composed of food items in the primary items group and food items in the manufactured goods group, rose from 8.47% to 8.71%.

“WPI inflation recorded a broad-based and higher-than-expected increase to reach a four-month high of 14.6% in March 2022, following soaring commodity prices amid the escalating Russian-Russian conflict. Ukrainian,” said Aditi NayarChief Economist, CIFAR.

“The sequential decline in the food and beverage index in March 2022 and the associated decline in its inflation rate have provided some relief, following the sharp rise in CPI food inflation last week. ”

According to Suman ChowdhuryChief Analytical Officer, Acuite Ratings & Research: “Clearly, the data reinforces the presence of stronger inflationary pressures in the manufacturing and services sectors.

“With the sharp rise in crude oil prices and the breaking of the USD 100 mark following the escalation of the Russian-Ukrainian conflict from the end of February 22, there was an acceleration in commodity prices and this is visible in both the sequential rise in the commodities and fuel and electricity index of 2.1% and 5.7% respectively.”

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