India’s wholesale price inflation rose to 2.13% in February from 1.81% reported in January. According to data released by the Ministry of Commerce, the rise in wholesale inflation in February mainly came from higher prices of other manufacturing, basic metals, non-food articles, food articles, and textiles.
The Wholesale Price Index (WPI) rose to 158.2 in February up from 157.8 in January.
On a month-on-month (MoM) basis, the WPI rose 0.25% in February, slower than the 0.38% increase recorded in January.
Primary articles see monthly decline
The Primary Articles index, which has a weight of 22.62%, declined 0.52% MoM to 192.9 in February from 193.9 in January.
Prices of food articles and minerals fell during the month. However, prices of crude petroleum and natural gas, as well as non-food articles, increased compared with the previous month.
Despite the monthly decline, inflation in this category stood at 3.27% year-on-year in February, up from 2.21% in January.
WPI food inflation rises to 1.85%
The WPI Food Index, which includes food articles and food products, declined month-on-month to 192.9 in February from 194.2 in January.
However, on a yearly basis, food inflation rose to 1.85% in February, compared with 1.41% in January.
Fuel and power remain in negative zone
The Fuel and Power index, which carries a weight of 13.15%, increased 1.17% month-on-month to 147.6 in February from 145.9 in January.
The rise mainly came from higher prices of mineral oils, while electricity prices declined slightly during the month. However, inflation in the fuel and power category remained in negative territory at -3.78% year-on-year.
Manufactured products push inflation higher
The Manufactured Products index, which has the largest weight of 64.23%, increased 0.47% month-on-month to 148.2 in February.
Out of the 22 manufacturing groups, prices increased in 16 groups, while five groups recorded a decline.
Prices rose in segments such as other manufacturing, food products, textiles, electrical equipment, and chemical products. Meanwhile, prices declined in sectors such as basic metals, computer and electronic products, fabricated metal products, wood products, and leather products.
Year-on-year inflation in manufactured products stood at 2.92% in February, slightly higher than 2.86% in January.
February CPI inflation rises to 3.21%
Earlier on March 12, the government had also released the CPI inflation data. The February Consumer Price Index was the second data release under the new series with base year 2024. According to the data, India’s retail inflation rose to 3.21% in February from 2.74% in January. The uptick was mainly driven by higher food prices and a sharp surge in precious metals, particularly gold and silver jewellery.
