India’s wholesale inflation rises to 2.38% in February
1 week, 3 days ago

India’s wholesale inflation rises to 2.38% in February

Live Mint  

New Delhi: India’s inflation based on wholesale prices rose to 2.38% in February, up from 2.31% in the previous month, show the Union commerce ministry’s provisional data released on Monday. Food prices decline Food prices, a major contributor to the index, increased by 5.94% annually in February, but eased from December’s 8.85% rise and January’s 7.47%. Beyond food prices Manufactured product prices, which make up around 64% of the wholesale price index, rose by 2.86% annually in February, up from 2.51% in January and 2.14% in December. “The uptick was predominantly on account of non-food items, whereas the WPI-food inflation eased to a six-month low of 5.9% from 7.5% in the previous month, led by a broad-based cooling across most primary food articles, including a sharp correction in vegetables,” said Rahul Agrawal, senior economist, ICRA Ltd. “The downward pressure on the headline print on account of the dip in food inflation was offset by the narrowing deflation in the fuel and power segment, and an uptick in the core WPI inflation to a 24-month high of 1.3%,” he added.

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