Index for "Minerals" group declined by 2.0 percent to 119.7 (provisional) from 122.2 (provisional) for the previous month due to lower price of copper concentrate (14%) and phosphorite (1%).
The Wholesale Price-Indexed (WPI) inflation of the country slipped marginally to 2.47 per cent in March from 2.48 per cent reported for the previous month because of falling prices of food items, especially vegetables and pulses.
On a year-on-year (YoY) basis, onion prices soared higher by 42.22 per cent whereas potato prices rose by 43.25 per cent.
Despite keeping rates on hold, the committee said that "ongoing tightening of monetary policy" would be needed to bring inflation back to the Bank's 2 per cent target.
On the other hand, the index for "Manufacture of Textiles" sub-group rose by 0.4 per cent to 114.1 from 113.7 for the previous month due to higher price of viscose yarn, knitted and crocheted fabrics, synthetic yarn and weaving and finishing of textiles (1 per cent each). However, the price of petroleum coke and kerosene moved up. In the same month a year ago, the WPI inflation was 5.11 per cent.
The inflation based on Consumer Price Index (CPI), a key data factored in by the RBI to arrive at interest rate, was 4.44 per cent in February.
"Unlike the retail inflation which dipped by 16bps in March 2018 over the previous month, the wholesale inflation remained flat".
The biggest influence on overall prices came from the wholesale of ores, metals and semi-finished metal products, which gained 3.4%. On the basis of Wholesale Price Index (WPI), inflation has steadily softened from 2.84 per cent in January to 2.47 per cent the following month.
"However, there are some noticeable changes at the disaggregate level".
According to a government data released Monday, food articles witnessed deflation after about eight months as vegetables, cereals, pulses, eggs, meat and fish, turned cheaper. Find us on Facebook too!