Wholesale price inflation eases to 25-month low of 3.85% in February
1 min read . Updated: 14 Mar 2023, 01:13 PM IST
PremiumThe deceleration in WPI is in line with the dip in retail inflation, data for which was released on Monday. Consumer Price Index-based inflation was at 6.44% in February, staying above the Reserve Bank of India’s upper tolerance level of 6% since January 2022. The central bank has projected retail inflation at 6.5% for FY23
New Delhi: India’s wholesale-price based inflation eased to a 25-month low of 3.85% for February, led by a fall in fuel and power costs and prices of manufactured items, as per data released by commerce ministry on Tuesday.
“Decline in the rate of inflation in February, 2023 is primarily contributed by fall in prices of crude petroleum & natural gas, non-food articles, food products, minerals, computer, electronic & optical products, chemicals & chemical products, electrical equipment and motor vehicles, trailers & semitrailers," the ministry said in a press release.
In January, inflation based on wholesale price index (WPI) stood at WPI at 4.73%. At 3.85%, inflation is at its lowest since January 2021 when it stood at 2.51%.
In February, however, inflation in food articles rose to 3.81% from 2.38% in January. Inflation in pulses was at 2.59%, while in vegetables, it was (-)21.53%. Inflation in oil seeds was (-)7.38% in February.
Fuel and power inflation eased to 14.82% last month from 15.15% in January. In manufactured products, it was 1.94% against 2.99% in January.
The deceleration in WPI is in line with the dip in retail inflation, data for which was released on Monday. Consumer Price Index (CPI)-based inflation was at 6.44% in February, staying above the Reserve Bank of India’s upper tolerance level of 6% since January 2022. The central bank has projected retail inflation at 6.5% for FY23.
The Reserve Bank of India has raised interest rates by 250 basis points since May last year to control rising prices. The latest rate hike of 25 basis points in February took the policy rate to 6.50%.
