India’s wholesale price inflation (WPI) moderated to 3.85% in February from 4.73% in January, with manufactured products’ inflation cooling from 3% in January to a little under 2%, and primary articles food and fuel and power inflation recording milder downturns in inflation month-on-month inflation.
Base effects also played a role as February 2022 had clocked a 13.43% uptick in wholesale prices.
“Decline in the rate of inflation in February 2023 is primarily contributed by fall in prices of crude petroleum & natural gas, non-food articles, food products, minerals, computer, electronic & optical products, chemicals & chemical products, electrical equipment and motor vehicles, trailers & semi-trailers,” the commerce and industry ministry said.
Inflation in pulses was 2.59%, while in vegetables was (-)21.53%. Inflation in oil seeds was (-)7.38% in February 2023.
Fuel and power basket inflation eased to 14.82% from 15.15% in the preceding month. In manufactured products it was 1.94%, against 2.99% in January.
The deceleration in WPI comes in line with the dip in retail inflation, data of which was released on Monday.
Consumer price index based retail inflation declined to 6.44% in February from 6.52% in January.
In its monetary policy review last month, the Reserve Bank of India had hiked key interest rate by 25 basis points to 6.50%, saying core inflation still remains sticky.
(With PTI inputs)