New Delhi: Amid the coronavirus lockdown, the inflation rate based on wholesale price index (WPI) reduced to 1 per cent for the month of March as compared to 2.26 per cent in February. The cool-down owes to a sharp fall in food prices in the country during the pandemic situation. Also Read - IndusInd Bank Picks Stake in Eveready, McLeod Russel
Food inflation in March fell to 4.91 per cent from 7.79 per cent in the previous month, a data released by the Commerce and Industry Ministry on Wednesday showed. Also Read - Railways to Save 10-15% Per Annum by Procuring Via GeM, Says Piyush Goyal
The nationwide lockdown which started on March 25 would have had some impact on the data collection for the month as industries feared their goods would go to waste as people will be unable to buy. Also Read - Coronavirus: Brazil Records 100,000 Deaths; Total Tally at 3 Million
Inflation in vegetables fell sharply to 11.90 per cent in March from a high of 29.97 per cent in the previous month. However, inflation in onion continued to rule high at 112.31 per cent during March.
Fuel and power basket witnessed deflation of 1.76 per cent, while manufactured products witnessed inflation of 0.34 per cent.
The government said, due to outbreak of coronavirus and national lockdown, the provisional figures of WPI for latest month are computed with low response rate.
The figures are likely to be revised in a significant manner during release of final month, it added.
With PTI inputs