India's wholesale prices rise at fastest pace in three months

INDIA’S wholesale price-based inflation in March rose 0.53 per cent, its highest level in three months, mainly driven by food and primary articles, government data showed.

That slightly outpaced the 0.51 per cent rise expected by economists polled by Reuters and increased from a 0.20 per cent year-on-year rise in February.

Food prices rose 4.65 per cent year-on-year compared with an increase of 4.09 per cent in February, while prices of primary articles were up 4.51 per cent against a 4.49 per cent rise in the previous month.

Manufactured product prices fell 0.85 per cent against a 1.27 per cent drop in the previous month. Fuel and power prices fell 0.77 per cent compared with a 1.59 per cent drop in February.

For the fiscal year ended March 31 the wholesale inflation index fell 0.70 per cent versus a 9.41 per cent rise the previous year.

Last week, government data showed the country’s annual retail inflation rate eased in March to a five-month low helped by a drop in fuel prices. REUTERS