Wholesale inflation growth pace slows

Cooling from its three year high, wholesale inflation recorded a growth at a slower pace in the month of February 2017, as the prices of manufactured products declined.

Although the wholesale price index (WPI) increased by 5.7 per cent during the month from its WPI levels in the previous year, according to the data of Ministry of Commerce and Industry.

Compared to the prices in March 2016, the food prices increased by 3.12 per cent in March 2017, while the price of primary articles increased by 4.63 per cent and the manufactured goods' prices increased by 2.99 per cent.
Whereas, the consumer price index hit a five month high of 3.8 per cent in March 2017, although the high was capped by the easing food prices.

The apex bank, Reserve Bank of India is expecting the retail inflation to average to 4.5 per cent in the initial months of the financial year 2017-18, whereas, the apex bank foresees a hike of 5 per cent in the second half.