India’s WPI Inflation Increases To Series High Of 7.4% In March: ICICI Securities

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ICICI Securities Report

Wholesale inflation increased to series-high of 7.4% in March 2021 (our estimate: 6.5%, consensus: 6.2%).

This is a sharp jump from 4.2% in February 2021 and 0.4% in March 2020. With this print, average wholesale inflation in FY21 stands at 1.2%.

WPI food inflation came in at 5.3% in March 2021 from 3.3% in February and 5.2% in March 2020. Out of this, the contribution by ‘primary articles food’ was approximately 203 basis points and ‘manufactured food’ was ~330bps.

While all components of the WPI basket recorded rising prices in March 2021, manufacturing prices continued to be the largest driver of inflation.

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