WPI Inflation Dips in March Amidst Global Trade Uncertainties

Wholesale Price Index (WPI) inflation is projected to decrease to 2.1% in March 2025, down from February's 2.4%, due to falling food and fuel prices. However, rising global metal prices may elevate core inflation. Global trade disruptions pose ongoing risks for future price trends.

According to a new report by Union Bank of India, the Wholesale Price Index (WPI) inflation is anticipated to ease to 2.1% year-on-year in March 2025, a decrease from February's 2.4%, primarily caused by seasonal food price reductions.

The report indicates a continuous decrease in vegetable prices, dropping by 4% month-on-month, though at a slower rate than previous months. Conversely, edible oil and sugar prices have risen slightly, which may counteract some benefits as these ingredients are crucial in manufactured food products.

Fuel prices are also expected to fall, linked to a decrease in global crude oil price, contributing to the WPI inflation's moderation. However, rising global metal prices due to tariff disputes are likely to push core inflation slightly higher. The report cautions that global trade tensions could impact future inflation trends, with food prices potentially rising after April.

(With inputs from agencies.)