New Delhi: Wholesale price inflation in India rose slightly to 2.38 per cent in February, up from 2.31 per cent in January, driven by costlier manufactured food items such as vegetable oil and beverages, as per government data released on Monday. In contrast, February 2024 saw a much lower WPI inflation of just 0.2 per cent.
Key Contributors to Inflation
According to the Ministry of Commerce & Industry, the positive inflation rate in February 2025 was mainly due to rising prices of manufactured food products, food articles, textiles, and non-food articles. The manufactured food products category saw a sharp inflation rate of 11.06 per cent, while vegetable oil prices surged by 33.59 per cent. Beverage prices also witnessed a marginal rise, reaching 1.66 per cent during the month.
Cooling Vegetable Prices Provide Relief
Despite the overall uptick in inflation, vegetable prices cooled, offering some relief to consumers. Notably, potato prices dropped significantly to 27.54 per cent from 74.28 per cent in January. This decline in vegetable prices helped offset some of the inflationary pressure in other food categories.
Fuel and Power Witness Deflation
The fuel and power category continued to experience deflation, with prices dropping 0.71 per cent in February, although this was an improvement from the 2.78 per cent deflation recorded in January. Lower fuel prices have helped mitigate some of the broader inflationary impact on the economy.
Retail Inflation at a Seven-Month Low
Meanwhile, separate data released last week showed that Consumer Price Index (CPI)-based inflation fell to a seven-month low of 3.61 per cent in February, largely due to easing food prices. This indicates a divergence between wholesale and retail price trends, with WPI inflation inching up while CPI inflation sees a decline.
The latest inflation data highlights mixed trends in the economy, with rising costs in manufactured food products countered by falling vegetable prices and stable fuel costs. Policymakers will likely keep a close watch on price movements in the coming months to ensure inflation remains under control.
