India’s March wholesale price inflation rate rose to a 4-month high of 14.55%

India’s wholesale price-based inflation rate (WPI) hit a four-month high of 14.55 percent in March as commodities and crude oil prices rose due to economic uncertainties triggered by the war in Ukraine.

According to a government statement, the WPI inflation rate has remained in double digits for the past 12 months.

“The high rate of inflation in March 2022 is primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in the global supply chain caused by Russia-Ukraine conflict,” the statement said.

Inflation in food prices eased slightly to 8.06 percent, from 8.19 percent in February, while vegetable process rose by a lower 19.88 percent against 26.93 percent in February.

Inflation in manufactured items was 10.71 percent in March, against 9.84 percent in February. In the fuel and power basket, the rate of price rise was 34.52 percent during the month.

Inflation in crude petroleum spiked to 83.56 percent in March, from 55.17 percent during February.
Retail inflation rose to 6.95 percent in March — the third consecutive month that the consumer price index has breached the central bank’s tolerance limit of 6 percent.

The Reserve Bank of India earlier this month kept its key repo rate unchanged for the 11th time in a row at 4 percent, to support growth.

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