Wholesale inflation in India accelerated in February, reaching 2.13 percent according to the latest Wholesale Price Index data from the government. The increase from January’s 1.81 percent was fueled by higher prices across food and non-food categories, offsetting some deflation in energy sectors.
In a detailed breakdown, food inflation rose sharply to 2.19 percent, with notable gains in pulses, potatoes, and proteins like eggs, meat, and fish. Vegetables provided some relief, dropping to 4.73 percent. Manufacturing saw a modest uptick to 2.92 percent, basic metals and textiles contributed positively, and non-food items ballooned to 8.80 percent.
Fuel and power continued negative territory at -3.78 percent, narrowing from January’s deeper deflation. Compared to February last year, the rate is lower at 2.13 percent versus 2.45 percent.
Retail inflation, reported earlier, mirrored the warmth at 3.21 percent overall—3.37 percent rural, 3.02 percent urban, and food at 3.47 percent. These figures underscore pressures in essential commodities amid seasonal factors and supply chain dynamics.
As the Reserve Bank of India calibrates its stance, analysts note that while within tolerable limits, persistent rises in core inflation components could prompt policy adjustments. Businesses and households brace for pass-through effects, with implications for purchasing power and economic momentum.