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India Wholesale Prices Rise in March on Fuel Costs
Jarred by fuel bills, India's wholesale price index (WPI) rose 3.88% on year in March, accelerating from a 2.13% on-year rise in February, reported the Ministry of Commerce and Industry (MCI) on Wednesday.India's WPI rose 1.64% in March from February, added the MCI.Global petroleum and gas prices surged following the effective closure to shipping of the Strait of Hormuz in early March, through which about 20% of world fossil fuels supplies are transited.With supplies scarce, India's crude petroleum WPI rose 49.10% in March from February and 51.57% on year, according to the MCI.The WPI is distinct from the consumer price index (CPI), that measures prices in retail locations, faced by ordinary shoppers. The WPI provides insight into cost pressures within the supply chain and production sectors, and is considered one precursor to subsequent changes in the CPI.In March, India's Wholesale Food Index rose 1.85% on year, while the manufactured products WPI rose 3.39% on year, reported the MCI.No doubt, the price pressures stemming from Persian Gulf turmoils will be watched by the Reserve Bank of India (RBI), the nation's central bank.The RBI has an annual target-rate of inflation band of 4%, plus or minus 2%, on the nation's CPI.India's CPI in March rose 3.40% on year, accelerating from a 3.21% on-year gain in February, the Ministry of Statistics reported on Monday.Last week, the Reserve Bank of India's (RBI) decided to keep its key policy interest rate unchanged at 5.25%, citing relatively strong economic growth but geopolitical tensions, and emergent inflationary pressures.
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