WPI Inflation Edges Up to 2.38% in February: Key Data
Why in the news
Wholesale inflation ticked higher in February as factory-goods prices firmed and fuel prices fell less, even as food inflation cooled.
Key facts
- Manufactured goods gained on higher industrial metal prices; the Bloomberg Commodity Price Index rose 4.1% in January and 9.2% in February, ending a six-month deflationary run.
- Fuel and power: -0.71% (January: -2.78%).
Food prices, February
| Item | Trend |
|---|---|
| Food overall | 3.38%, down sharply |
| Onion | Up 48.05% |
| Fruits | Up 20.88% |
| Pulses | Down 1.04% |
| Vegetables | Down 5.8% |
- Within manufactured goods, vegetable and animal fats rose 33.6% and food products 11.06%.
Outlook
- CARE Ratings’ Rajani Sinha expects benign food inflation, aided by fresh Rabi harvest and good reservoir levels.
- Weather shocks and global commodity volatility need watching.
Exam angle
- Manufactured products weight in WPI: 64.2%.