The wholesale inflation measured when it comes to the WPI index got here down because of the weakening of costs of gasoline, energy, and meals.
New Delhi: With the nation underneath the grip of Covid-19 pandemic and financial actions coming to halt, the wholesale value inflation dropped to simply 1 per cent for the month of March in comparison with 2.26 per cent in February, in keeping with authorities knowledge.The dip in wholesale value index (WPI) factors out on the falling demand amid the Covid-19 lockdown which has been prolonged to May 3.
The wholesale inflation measured when it comes to the WPI index got here down because of the weakening of costs of gasoline, energy and meals. Inflation in greens fell to 11.90 per cent in March from 29.97 per cent within the earlier month.
Food costs for the month of March cooled off to five.49 per cent in comparison with 7.31 per cent within the earlier month. For meals articles, it fell to 4.91 per cent as in comparison with 7.79 per cent in February. WPI gasoline and energy inflation stood at -1.76 per cent in March towards 3.38 per cent in February.
Retail inflation measured as shopper value index (CPI) additionally took a dip to five.91 per cent for March reflecting weak demand as individuals are not spending underneath the lockdown. It could additional worsen within the subsequent few months particularly in April with the extension in lockdown.
However, RBI does not think about wholesale value inflation for altering financial coverage whereas decrease ranges of retail inflation and slowdown in progress could also be others causes for the coverage charge minimize.