Costlier crude, low base: WPI inflation shoots up to 8-year high of 7.39%

Inflation measured by wholesale price index (WPI) shot up to 7.39% in March, the highest rate since October 2012, primarily on higher prices of crude oil, but also aided by a low base.

Rise in prices of some manufactured goods and food items like pulses and fruits also pushed the index.

Retail (CPI) inflation scaled a four-month peak of 5.52% in March.

Rising inflation could dissuade RBI-MPC from opting for rate cuts, even as chances of another economic disruption have increased due to Covid surge.