India’s wholesale price inflation rose to 2.13 percent in February from 1.81 percent in January, mainly driven by higher prices of manufactured products, food items and basic metals. Fuel and power inflation, however, continued to remain in the negative zone.
Data released by the Ministry of Commerce and Industry showed that the increase in wholesale inflation was largely due to higher prices in segments such as other manufacturing, basic metals, non-food articles, food articles and textiles.
The Wholesale Price Index (WPI) rose to 158.2 in February from 157.8 in January. On a month-on-month basis, WPI increased 0.25 percent in February, slower than the 0.38 percent rise recorded in January.
The primary articles index, which carries a weight of 22.62 percent, declined 0.52 percent month-on-month to 192.9 in February from 193.9 in January.
Prices of food articles and minerals declined during the month. However, crude petroleum, natural gas and non-food articles recorded price increases compared with the previous month.
Despite the monthly decline, inflation in this category rose to 3.27 percent year-on-year in February from 2.21 percent in January.
The WPI food index, which combines 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 increased to 1.85 percent in February compared with 1.41 percent in January.
The fuel and power index, with a weight of 13.15 percent, increased 1.17 percent month-on-month to 147.6 in February from 145.9 in January.
The increase was mainly due to higher prices of mineral oils, while electricity prices declined slightly during the month. Even so, fuel and power inflation remained negative at -3.78 percent year-on-year.
The manufactured products index, which has the largest weight of 64.23 percent in the WPI basket, rose 0.47 percent month-on-month to 148.2 in February.
Out of the 22 manufacturing groups, prices increased in 16 groups, while five groups recorded declines.
Price increases were seen in sectors such as other manufacturing, food products, textiles, electrical equipment and chemical products. Prices declined in segments including 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 percent in February, slightly higher than 2.86 percent in January.
Earlier, the government had released the latest data for the Consumer Price Index (CPI). Retail inflation rose to 3.21 percent in February from 2.74 percent in January.
The increase was mainly driven by higher food prices and a sharp rise in precious metals, particularly gold and silver jewellery.