Wholesale Price Index (WPI) Inflation sped up to an eight-year high in March on rising crude oil and metal prices. 

The WPI, a measure that tracks the changes in the price of goods before the retail level stage, rose to 7.39% in March from a year ago according to the government data, beating Bloomberg estimates of 6.16%. India’s wholesale food prices in March increased to 3.24% year-on-year. It comes days after consumer price data which stood at 5.52%.

“Reduction in tax levies on petrol/diesel pump prices would ease inflationary pressures,” said Achala Jethmalani, Economist at Mirae Assets Capital Markets. “As a second round effect we could see cost-push price pressures ease too”.

The Reserve Bank of India in its recent Monetary Policy Committee meeting kept the benchmark rate unchanged for the fifth meeting in a row. Committee also maintained the ‘accommodative’ policy stance. The Government of India also retained a 4 percent inflation target for the next five years.