India's WPI inflation for apparel drops 0.9% in March
16 April, 2018, 13:52 | Author: Regina Silva
He said BNZ had expected inflation to lift 0.3 per cent on the quarter but raised that forecast to 0.4 per cent after government figures showed food prices jumped 1 per cent in March.
Deflation in vegetables stood at 2.70 per cent, pulses at 20.58 per cent and wheat at 1.19 per cent last month.
Furthermore, index for "Non-Food Articles" group declined by 0.3 percent to 120.2 (provisional) from 120.6 (provisional) for the previous month due to lower price of guar seed (7%), niger seed (6%), floriculture (5%), raw cotton, cotton seed, skins (raw) and gingelly seed (3% each), copra (coconut) (2%) and linseed, castor seed, raw jute, groundnut seed and rape & mustard seed (1% each). In February this year, WPI inflation had come in at 2.48 per cent.
"We suspect that these factors will mean that we see another step-down in CPI inflation in March such that it falls to a one-year low of 2.5 per cent".
The official WPI for "All Commodities" (Base: 2011-12=100) for the month of March, 2018 rose by 0.2 percent to 116.0 (provisional) from 115.8 (provisional) for the previous month. Food articles inflation contracted in March 2018 at 0.29 per cent.
Index for "Crude Petroleum & Natural Gas" group declined by 0.5 percent to 80.2 (provisional) from 80.6 (provisional) for the previous month due to lower price of crude petroleum (1%).
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However, the price of raw silk, mesta and hides, sunflower, soyabean, fodder, raw wool, coir fibre and raw rubber moved up.
Inflation in "fuel and power" basket however rose to 4.70 percent in March from 3.81 percent in the previous month.
On a year-on-year (YoY) basis, onion prices soared higher by 42.22 per cent whereas potato prices rose by 43.25 per cent.
The index for apparel dropped by 0.9 per cent to 137.8 in March, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry.
In its first monetary policy review for the fiscal, the Reserve Bank had earlier this month maintained status-quo on interest rate citing inflationary concerns. However, the March 2018 inflation is higher than 3.89 per cent recorded in the same month past year.
Data released on April 12 showed that consumer price inflation eased to 4.28 percent in March from 4.44 percent in February.
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