New Delhi: India’s inflation based on the Wholesale Price Index (WPI) surged to 14.55 per cent in March from 13.11 per cent recorded in the previous month on rising crude oil, natural gas, mineral oils and basic metals prices due to the disruptions caused by the Russia-Ukraine conflict, the government data showed on Monday.
The wholesale price-based inflation in March is the highest in four months. It is almost double from 7.89 per cent recorded in March 2021.
The high rate of inflation in March 2022 is primarily due to the rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in the global supply chain caused by the Russia-Ukraine conflict, the Ministry of Commerce & Industry said in a statement.
WPI-based inflation has been in the double-digit for the 12 consecutive months. For the whole financial year 2021-22, WPI-based inflation was in double-digits.
Fuel and power inflation soared to 34.52 per cent in March from 31.50 per cent in the previous month. WPI-based inflation in manufactured products soared to 10.71 per cent from 9.84 per cent in the previous month. Manufactured products have 64.2 per cent weight in the Wholesale Price Index (WPI).
Manufactured products are divided into 22 groups. Out of these 18 groups have witnessed an increase in prices while 3 groups witnessed a decrease in prices in March 2022 as compared to February 2022.
“The increase in prices is mainly contributed by basic metals, food products, chemical & chemical products and textiles,” the Ministry of Commerce and Industry said.
Some of the groups that have witnessed a decrease in prices are manufacturers of other transport equipment; pharmaceuticals, medicinal chemical & botanical products; beverages in March 2022 as compared to February 2022. While the manufacture of wearing apparel remains unchanged in March 2022 as compared to February 2022.
Primary articles, which have a 22.6 per cent weight in the WPI, became costlier by 15.54 per cent in March year-on-year. WPI-based primary articles inflation rose to 15.54 per cent in March from 13.39 per cent in the previous month.
Prices of mineral oils surged by 9.19 per cent in March 2022 as compared to February 2022.
Prices of Crude Petroleum & Natural Gas (21.18 per cent), Minerals (9.72 per cent) and Non-food Articles (2.94 per cent) increased in March 2022 as compared to February 2022.
However, prices of food articles (-0.82 per cent) declined in March 2022 as compared to February 2022.
The Food Index consisting of ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group has increased from 166.4 in February 2022 to 167.3 in March 2022. The rate of inflation based on the WPI Food Index increased from 8.47 per cent in February 2022 to 8.71 per cent in March 2022.
