Inflation as measured by WPI eases to 1.34% in March, reaches a 29-month low

NEW DELHI, Apr 17: In March, wholesale price-based inflation fell to a 29-month low of 1.34%, attributed to decreasing prices of fuel items and manufactured products. Although, the cost of food articles increased, resulting in a rise in food article inflation from 3.81% in February to 5.48% in March. The decline in inflation was influenced by a fall in prices of minerals, textiles, basic metals, non-food articles, crude petroleum & natural gas, paper and paper products, and rubber & plastic products, according to the commerce and industry ministry. The fuel and power basket inflation eased from 14.82% in February to 8.96% in March, while inflation in manufactured products was (-)0.77%. The retail inflation rate also decreased to a 15-month low of 5.66% in March. The RBI cautioned in its monetary policy review that adverse climatic conditions could impact future inflation rates, and it projected the average retail inflation rate for the current fiscal year to be 5.2%.