India’s wholesale price index-based inflation (WPI) edged up to 2.13 per cent in February this year on an annual basis, from 1.81 per cent registered in January. On a month-on-month basis, the WPI slipped to 0.25 per cent last month. 

 

Data released by the Ministry of Commerce and Industry showed that the positive rate of inflation during last month is primarily due to an increase in prices of other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles.

 

Among major categories, Manufactured products, which carry the highest weight in the WPI basket, recorded an annual inflation rate of 2.92 per cent in February. Inflation in Primary articles rose sharply to 3.27 per cent from 2.21 per cent in January.

 

However, fuel and power segment continued to witness deflation, declining by 3.78 per cent, though the deflation was slightly less severe than 4.01 per cent recorded in January.

 

The WPI food index, which includes food articles and food products, accelerated by 1.85 percent on an annual basis. The increase in WPI broadly mirrors the recent trajectory in retail inflation. India’s retail inflation quickened to 3.21 per cent last month on an annual basis, from 2.74 per cent in January.