The wholesale price index (WPI)-based inflation in India eased in February, dropping to 0.2 per cent from the previous month's 0.27 per cent. From April to October, WPI inflation remained in the negative territory, only turning positive in November at 0.26 per cent.
According to a statement from the Ministry of Commerce and Industry, the annual inflation rate, based on the All India Wholesale Price Index (WPI), stood at 0.20 per cent (provisional) for February 2024, compared to February 2023.
Data revealed a marginal uptick in food inflation to 6.95 per cent in February from 6.85 per cent in January.
Vegetable inflation rose to 19.78 per cent in February, up from 19.71 per cent in January. Pulses saw a WPI inflation rate of 18.48 per cent in February, an increase from 16.06 per cent in January.
The Wholesale Price Index (WPI) inflation, after a seven-month stint in the negative territory from April to October, finally turned positive in November, registering at 0.26 per cent. By February 2023, this figure had climbed to 3.85 per cent.
Within the data, it was noted that the inflation within the "fuel and power" category experienced a further contraction of 1.59 per cent in February, compared to a deflation of 0.51 per cent in January. Similarly, prices of manufactured goods saw a decline of 1.27 per cent in February, slightly more than the 1.13 per cent dip observed in January.
While the Wholesale Price Index (WPI) provides insights into the prices received by producers in the wholesale market, the Consumer Price Index (CPI) gauges retail prices, forming the basis for the Reserve Bank of India's (RBI) monetary policy decisions.
Recently released CPI data revealed that retail inflation stood at 5.09 per cent in February, remaining within the RBI's comfort zone of 6 per cent for the sixth consecutive month.
February's WPI figures remained nearly unchanged from January, holding steady at 5.1 per cent. However, the data indicated that prices of certain food items had shown signs of firming up.