Tracking Inflation

India's wholesale inflation eased to 5.70% in March from a three-year high of 6.55% in the previous month thanks to a slower increase in prices of fuel and in manufacturing sector, even as costlier vegetables pushed up food inflation during the month. Food inflation firmed up to 3.12% in March from 2.69% in February, led by an inflation in vegetable prices that had been falling for the past six months.

Wholesale price inflation had declined 0.45% in March last year. Core wholesale inflation declined to 2.1% in March.

Last week, government data showed consumer inflation accelerating to a five-month high of 3.81% in March largely due to increased fuel prices.

Wheat inflation subsided in view of the expected arrival of the new crop, but rice inflation inched up. Fuel and power inflation rose 18.16% in March from 21.02% in the previous month. Wholesale price inflation in manufactured products, which has a 64.97% weightage in the index, increased to 2.99%, down from 3.66% in February .

On Monday, the government revised the increase in Wholesale Price Index for January to 5.53% from 5.25% earlier.

Experts said that a warmer summer and uncertainty over monsoon rainfall may push up food inflation further in the coming months.

The RBI last week kept interest rates unchanged citing inflation risks.

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