WPI inflation spikes for second consecutive month to 3.18% in March on costlier food, fuel

New Delhi: Wholesale price-based inflation rose for the second consecutive month to 3.18 percent in March on costlier food and fuel, government data released on Monday showed. The Wholesale Price Index (WPI) based inflation was at 2.93 percent in February. It was 2.74 percent in March 2018. [caption id=“attachment_1001959” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Inflation in food articles hardened with steep rise in prices of vegetables during March 2019. Vegetables inflation was at 28.13 percent in March, up from 6.82 percent in the previous month. However, inflation in potato cooled substantially to 1.30 percent, from 23.40 percent in February. Inflation in food articles basket was 5.68 percent during March. Inflation in ‘fuel and power’ category also spiked to 5.41 percent, from 2.23 percent in February. The Reserve Bank of India (RBI), which mainly factors in retail inflation for monetary policy decision, had earlier this month cut interest rates by 0.25 percent. Retail inflation accelerated to 2.86 percent in March from 2.57 percent a month ago, data released last week showed. For April-September period, the RBI has projected retail inflation at 2.9-3 percent, mainly due to lower food and fuel prices as well as expectation of a normal monsoon.