The annual rate of Wholesale Price Index (WPI) inflation rose to a record high of 14.55% for the month of March 2022 (over March 2021) as compared to 7.89% in March 2021.
The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) released index numbers of wholesale prices in India (Base Year: 2011-12) for the month of March 2022 (Provisional) and for the month of January 2022 (Final) today.
For the month of January 2022, the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 143.8 and 13.68% respectively.
The high rate of inflation in March 2022 is primarily due to the rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in the global supply chain caused by the Russia-Ukraine conflict.
Provisional figures of the Wholesale Price Index (WPI) are released on the 14th of every month (or the next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country.
After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.
Month over Month Change in Major Groups of WPI
The month over month changes in major groups of WPI are here as under-
Primary Articles (Weight 22.62%)
The index for this major group increased by 2.10% to 170.3 (provisional) in March 2022 from 166.8 (provisional) for the month of February 2022.
Prices of Crude Petroleum & Natural Gas (21.18%), Minerals (9.72%), and Non-food Articles (2.94%) increased in March 2022 as compared to February 2022.
Prices of Food Articles (-0.82%) declined in March 2022 as compared to February 2022.
Fuel and Power (Weight 13.15%)
The index for this major group increased by 5.68% to 146.9 (provisional) in March 2022 from 139.0 (provisional) for the month of February 2022.
Prices of Mineral Oils (9.19%) increased in March 2022 as compared to February 2022.
Manufactured Products (Weight 64.23%)
The index for this major group increased by 2.31% to 141.6 (provisional) in March 2022 from 138.4 (provisional) for the month of February 2022.
Out of the 22 NIC two-digit groups for manufactured products, 18 groups have witnessed an increase in prices while 3 groups have witnessed a decrease in prices in March 2022 as compared to February 2022.
The increase in prices is mainly contributed by basic metals, food products, chemical & chemical products, and textiles.
Some of the groups that have witnessed a decrease in prices are the manufacture of other transport equipment; pharmaceuticals, medicinal chemical & botanical products; beverages in March 2022 as compared to February 2022.
While the Manufacture of wearing apparel remains unchanged in March 2022 as compared to February 2022.
WPI Food Index (Weight 24.38%)
The Food Index consisting of ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group has increased from 166.4 in February 2022 to 167.3 in March 2022.
The rate of inflation based on the WPI Food Index increased from 8.47% in February 2022 to 8.71% in March 2022.
Response Rate
The WPI for March 2022 has been compiled at a weighted response rate of 84.4 percent, while the final figure for January 2022 is based on the weighted response rate of 92.0percent.
The Provisional figures of WPI will undergo revision as per the final revision policy of WPI.
