The level of inflation is coming down in the country. After retail, the inflation rate based on Wholesale Price Index has also broken in March 2023. It has reached the lowest level of 29 months. In March 2023, the figure of wholesale inflation has been 1.34 percent. This is the 10th consecutive month when the level of wholesale inflation has come down.
When the Reserve Bank of India (RBI) announced its monetary policy in early April, its decision not to increase the repo rate surprised people. But now the reason is being understood. RBI has adopted tight monetary policy for almost a year. Since May last year, the repo rate has been increased by 2.50 percent.
Wholesale inflation was around 4% in February
The wholesale inflation figure was 3.85 percent in February 2023 before March. Whereas in January 2023 it was at 4.73 percent. On the other hand, looking at last year's figures, the wholesale inflation rate in March 2022 was 14.63 percent.
Earlier in March 2023, the retail inflation rate has also been at a 15-month low. In March 2023, it has been at 5.66 percent. Whereas in February 2023 it was 6.44 percent. And in March 2022, its level was at 6.95 percent.
RBI also reduced the inflation forecast
RBI has also expressed the hope of reducing inflation in the country in the recently released monetary policy. The central bank has reduced the inflation forecast for the current financial year from 5.3 percent to 5.2 percent. At the same time, the International Monetary Fund (IMF) has also predicted the country's inflation rate to be 4.9 percent in the current financial year.
The prices of food and drink are decreasing
The biggest reason for the moderation in wholesale inflation is the food index inflation coming down to 2.32 per cent in March 2023 from 2.76 per cent in February 2023. The inflation rate in wheat and pulses has been 9.16 percent and 3.03 percent. Whereas in vegetables, it has registered a decline of 2.22 percent and in oilseeds, it has registered a decline of 15.05 percent.
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