India's wholesale inflation eased to the lowest in four months as prices of food and non-food articles fell.
Inflation as measured by the Wholesale Price Index fell to 1 percent in March from 2.26 percent in the preceding month, according to data released by the Ministry of Commerce and Industry. That's the lowest since November 2019. A Bloomberg poll of 18 economists had pegged the figure at 1.41 percent.
Wholesale prices may continue to ease as the nationwide lockdown through the month of April brings the demand and supply of non-essential items to a near stop. The ministry, in the media statement, said due to the coronavirus outbreak and the lockdown, the figures are computed with a low response rate. The figures are likely to be revised in a significant manner.
Also, retail inflation eased to 5.9 percent in March, falling below the Monetary Policy Committee's upper target of 6 percent for the first time since November 2019.
Inflation Internals
- Primary articles inflation stood at 3.72 percent against 6.71 percent in February.
- Prices of food articles rose 4.91 percent in March against an increase of 7.79 percent in the previous month.
- The index of non-food articles rose by 1.94 percent against a rise of 6.82 percent in February.
- Fuel and power index contracted 1.76 percent against a rise of 3.38 percent in February.
- Manufactured products inflation stood at 0.34 compared with 0.42 percent in February.
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