India’s WPI inflation rises to 2.13% in February as food, non-food article prices climb

India’s wholesale price inflation rose to 2.13 per cent in February, marking the fourth consecutive monthly increase, as higher prices of food items and non-food articles pushed up the overall price index, according to government data released on Monday.

Inflation measured by the Wholesale Price Index (WPI) had stood at 1.81 per cent in January, while it was 2.45 per cent in February last year.

The Ministry of Commerce and Industry said the positive inflation rate during the month was largely driven by price increases in several segments, including other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles.

Data released by the government showed that inflation in food articles rose to 2.19 per cent in February, compared with 1.55 per cent in January.

Within the food basket, vegetable inflation eased to 4.73 per cent in February from 6.78 per cent a month earlier. However, prices of several other items including pulses, potato and eggs, meat and fish recorded an increase during the month.

Meanwhile, inflation in non-food articles jumped sharply to 8.80 per cent in February, up from 7.58 per cent in January, indicating rising price pressures in segments such as oilseeds and other primary commodities.

Inflation in manufactured products, which carry the largest weight in the WPI basket, edged up to 2.92 per cent in February from 2.86 per cent in the previous month, reflecting modest price increases across industrial goods.

Despite the broader rise in wholesale prices, the fuel and power category remained in deflation, with prices contracting 3.78 per cent in February, although the pace of decline moderated slightly from a 4.01 per cent fall in January.

Government data showed that the overall WPI index rose to 158.2 in February from 157.8 in January, registering a month-on-month increase of 0.25 per cent.

Meanwhile, retail inflation also edged higher in February. According to the latest Ecowrap report by State Bank of India Research, consumer price index (CPI)-based inflation rose to 3.21 per cent in February, up from 2.75 per cent in January, largely driven by food prices.

The report said food inflation increased by 129 basis points to 3.55 per cent during the month.