Wholesale Price Index (WPI)-based inflation climbed to an eight-year high of 7.39 per cent in March 2021 compared to the same month last year, primarily due to higher fuel and power prices. Before this, WPI-based inflation was recorded at 8.6 per cent in March 2013.

On a month-on-month basis, WPI inflation saw 1.57 per cent rise in March as compared to 4.17 per cent in February, the data of Union Commerce and Industry Ministry shows. For January, the WPI inflation rate stood at 2.51 per cent. Prices of crude oil, petroleum products and basic metal substantially increased in March 2021 compared to those of March 2020. The WPI for March 2020 was computed with relatively low response rate due to nationwide lockdown, the ministry’s statement has said. 

Inflation for primary articles rose by 0.55 per cent in March over February, while inflation for crude petroleum, natural gas and non-food articles rose by 8.64, 1.9 and 0.35 per cent respectively over the preceding month. Fuel and power saw the inflation index rising by 5.28 per cent in March over February. Coal prices declined in March compared to February, seeing deflation of 0.08 per cent. The inflation index for manufactured products rose by 1.27 per cent in March compared to February. The rate of inflation based on WPI Food Index increased from 3.31 per cent in February to 5.28 per cent in March. 

According to the ministry, the WPI for March 2021 has been compiled at a weighted response rate of 78 per cent, while the final figure for January 2021 is based on the weighted response rate of 89 per cent. The provisional figures of WPI will undergo revision according to the final revision policy of WPI, it has added.