India's Wholesale Price Index Inflation Rises to 2.13% in February
Synopsis
India's inflation based on the wholesale price index has increased to 2.13% in February, driven by higher prices of manufactured goods, metals, and textiles. This marks a notable rise from January's 1.81%. Find out more about the recent trends and economic implications.
Key Takeaways
WPI inflation rose to 2.13% in February.
Key contributors include increases in manufactured goods , basic metals , and textiles .
Food prices decreased by 1.33% compared to January.
The RBI raised its inflation forecast for FY27.
Overall food inflation was recorded at 3.47% .
New Delhi, March 16 (NationPress) - The inflation rate in India, determined by the wholesale price index (WPI), has risen to 2.13 percent for February, marking an increase compared to the same month the previous year. This rise is largely attributed to higher prices in manufactured goods, basic metals, food items, and textiles, as reported by the Ministry of Commerce and Industry on Monday.
The WPI inflation for February surpassed the 1.81 percent noted in January.
Food prices saw a decrease of (-)1.33 percent in February compared to January, while mineral prices dropped by (-)1.21 percent. Conversely, crude petroleum and natural gas prices increased by 4.17 percent, and non-food items became 0.83 percent more expensive during the same period.
This uptick in inflation occurs amid rising tensions related to the war in Iran, which began on February 28, contributing to fluctuations in global commodity prices.
Additionally, India’s inflation rate, utilizing the new Consumer Price Index (CPI) series with a base year of 2024, reached 3.21 percent for February compared to the same month last year, as per data released by the Ministry of Statistics last week.
The Reserve Bank of India (RBI) monitors CPI inflation to shape its monetary policy. In February, CPI inflation rose by 0.47 percent from the revised 2.74 percent recorded in January when the new series was introduced.
Notably, there was over a 10 percent decline in the price index of key vegetables such as tomatoes, peas, and cauliflower in February compared to January.
Overall food inflation for February was recorded at 3.47 percent compared to the same month last year, while housing inflation stood at 2.12 percent.
On Friday, the RBI’s Monetary Policy Committee (MPC) revised its inflation forecast for FY27, indicating a shift from prior expectations of disinflation. CPI inflation projections for the first two quarters of FY27 have been adjusted slightly upward to 4 percent and 4.2 percent, respectively.
The RBI noted, "The modest upward adjustment in the inflation outlook is mainly due to rising prices of precious metals, accounting for approximately 60-70 basis points. Core inflation remains low."
Point of View
The fluctuations in India's inflation rate highlight ongoing economic challenges. The increase in wholesale price index inflation signals potential pressures on consumers, particularly in essential goods. Monitoring these trends is crucial for understanding broader economic stability.
NationPress
11 Aug 2026
Frequently Asked Questions
What caused the rise in WPI inflation in February?
The rise in WPI inflation to 2.13% in February is primarily due to increased prices of manufactured goods, basic metals, food articles, and textiles.
How does WPI inflation affect consumers?
WPI inflation can indicate rising costs of goods, which may ultimately lead to higher prices for consumers in various sectors.
What was the CPI inflation rate for February?
The CPI inflation rate for February was reported at 3.21%, reflecting a modest increase compared to the previous year.
How did the prices of food articles change in February?
Food article prices decreased by 1.33% in February compared to January, while overall food inflation stood at 3.47% year-on-year.
What is the RBI's role regarding inflation?
The Reserve Bank of India tracks inflation rates like CPI to formulate monetary policy aimed at maintaining economic stability.
