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Below Perspective on WPI By Mr. Mohit Ralhan, Chief Executive Officer, TIW Capital

“The sharp decline in WPI inflation to 1.34% in March from 3.85% in February is an extremely significant event also since it is across the board. The negative inflation in vegetable prices and manufactured products indicates to easing of retail inflation as well in the coming quarter. The negative inflation of 23.53% crude petroleum is also a big positive. RBI still may need to look for stabilization of WPI inflation at these levels and more importantly a reduction in the CPI index before taking the decision to pivot its policy stance. The US Fed is also appearing to be towards the end of its interest rate increase cycle and therefore the probability of a policy pivot in 2023 has gone up. With economic growth still looking on track, the reduction in inflation increases the headroom for policy maneuvering quite significantly and keeps India in its position amongst the global growth leaders” 

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