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CARE Ratings Research Report
Wholesale inflation in March 2021 has recorded a notable jump to 7.4%, higher than 4.2% in February 2021 and 0.4% in March 2020.
We had estimated WPI at 5.8% for the month.
Increase in both retail as well as wholesale inflation is indicative of a rebound in inflationary pressures in the economy.
The rise in inflation during March 2021 can be attributed to a broad-based increase in all the sub-components of the wholesale basket.
Wholesale inflation in the manufacturing segment has scaled a near eight-year high and prices in the fuel and power segment rose to a near two-year high.
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