Fall in WPI attributed to reduced fuel prices: FICCI

New Delhi [India], Apr 17 (ANI): According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the decline in wholesale price-based inflation (WPI) is a result of a fall in the price of fuel and manufactured items.

"The WPI based inflation announced today shows a decline from the previous month and this can be attributed to softening of inflation in fuel and power and manufactured goods segments. Further, the recent strengthening of Rupee vis-a-vis the USD will also contribute towards limiting imported inflation," said Pankaj Patel, president, FICCI.

WPI in March was recorded at 5.7 percent as opposed to 6.55 percent in February.

Headline inflation in the fuel and power group stood to 18.16 per cent in March in comparison to 21.02 per cent in February. However, the price of LPG (2 percent) and aviation turbine fuel (1 percent) moved up.

WPI inflation in the group manufactured products stood at 2.99 percent in March versus 3.66 percent in the previous month.

However, inflation in food articles rose marginally to 3.12 percent in March compared to 2.69 percent in February. This was primarily due to higher prices of fruits and vegetables and ragi (5 percent each), bajra (2 percent) and egg, fish-marine and rice (1 percent each).

Patel claimed that the rise in food inflation was a result of wavering weather conditions, urging that this needs to be constantly monitored.

"The government is keeping a close tab on the progress made on irrigation projects and cold chain projects and improvement in these areas is likely to yield positive results. The focus on drip irrigation and micro-irrigation along with improvement in the efficiency of cropping patterns and water use mechanisms will strengthen agri-production and productivity", he added. (ANI)