New Delhi : Inflation at the wholesale level eased to 5.7 per cent in March on declining fuel prices and appreciating rupee even as food prices hardened.
Based on the Wholesale Price Index (WPI), inflation was at 6.55 per cent in February. In March last year, it was at (-)0.45 per cent. According to the official data released today, food prices saw a sharp rise of 3.12 per cent last month compared to 2.69 per cent in February. This was primarily because of a big jump in vegetable prices where inflation stood at 5.70 per cent. As for fruits, the figure was also high at 7.62 per cent, while for eggs, meat and fish, it was 3.12 per cent. Fuel inflation declined to 18.16 per cent, from 21.02 per cent in February. Manufactured items witnessed some softening in the rate of price rise, with inflation at 2.99 per cent in March, as against 3.66 per cent in the previous month, reports PTI.
Experts said while the rupee has been on an appreciating trend against the US dollar since February, cut in fuel prices in March pushed down fuel and manufactured product prices. A stronger rupee lowers import costs and cuts down the cost of manufacturing. International oil prices dipped in a month’s time to $49 per barrel from $55, reflecting in a Rs 3.77 per litre cut in petrol price and Rs 2.91 in diesel. Rates have since climbed to $ 54 per barrel. The rupee which was at 66.7 to a dollar in February end strengthened to 64.85 to a dollar. “We believe there is an upside risk to the inflation with the increasing global commodity prices and expectation of possible below-normal monsoons. Food prices could see a moderation in the coming months with the Rabi harvest coming into the markets,” CARE Ratings said in a statement.
