Fall in food prices eases WPI in­fla­tion

Slips marginally to 2.47% in March

Business Standard - - FRONT PAGE - INDIVJAL DHASMANA

Re­flect­ing farm­ers’ woes, whole­sale price food items saw de­fla­tion in March. This has pulled down the over­all in­fla­tion rate marginally to 2.47 per cent in March from 2.48 per cent in Fe­bru­ary.

Re­flect­ing farm­ers’ woes, at least in some com­modi­ties such as toma­toes, whole­sale price food items saw de­fla­tion in March. This has pulled down the over­all in­fla­tion rate marginally to 2.47 per cent in March, from 2.48 per cent in Fe­bru­ary, even as oil in­fla­tion more or less neu­tralised the im­pact of food in­fla­tion.

Food de­fla­tion stood at 0.29 per cent in March, com­pared to in­fla­tion of 0.88 per cent in Fe­bru­ary. Within food, veg­eta­bles saw de­fla­tion at 2.70 per cent, against 5.26 per cent in­fla­tion. Among veg­eta­bles, toma­toes saw a price fall of 26.48 per cent in terms of the whole­sale price in­dex (WPI). The in­dex stood at 92.7 points in March, which meant prices of toma­toes, on an av­er­age, were less than those in 2011-12.

Pulses have been wit­ness­ing de­fla­tion for months now. The rate of de­fla­tion, though, came down to 20.58 per cent in March, from 24.51 per cent in the pre­vi­ous month.

Su­nil Kumar Sinha, di­rec­tor, In­dia Rat­ings, said prices of many pulses are rul­ing be­low the min­i­mum sup­port price in some parts, in­clud­ing Mad­hya Pradesh. How­ever, food in­fla­tion was off­set by fuel prices, even as liq­ue­fied petroleum gas en­tered the de­fla­tion­ary zone. Fuel and power in­fla­tion rose to 4.70 per cent in March, against 3.81 per cent in the pre­vi­ous month. Sinha said with Brent crude oil prices go­ing past $70 per bar­rel and the on­set of sum­mer likely to im­pact the prices of fruits and veg­eta­bles ad­versely, the in­fla­tion tra­jec­tory over the com­ing few months will be cru­cial for the Re­serve Bank of In­dia to de­cide its pol­icy stance.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.