India's wholesale inflation rises to 2.13%
What's the story
India's wholesale price inflation has accelerated to an 11-month high of 2.13% in February, according to government data released on Monday. The increase is mainly due to rising prices across key sectors such as other manufacturing, basic metals, non-food articles, and food items textiles. This indicates broad-based cost pressures in the industrial and commodity segments of the economy.
Food prices
Food inflation also rose to 1.85%
Food inflation also rose to 1.85% in February, compared to a 1.41% rise in January. The Wholesale Price Index (WPI) for all commodities stood at 158.2 in February, up from January's figure of 157.8 and December's figure of 157.2 (2011-12 base year). This indicates rising wholesale costs across various sectors, especially food and textiles.
Price surge
Inflation in primary articles surged to 3.27%
Among major components, inflation in primary articles surged to 3.27% in February, up from January's 2.21%. Inflation for manufactured products also rose slightly to 2.92% from January's 2.86%. However, fuel and power prices remained deflationary at -3.78%, albeit less negative than January's -4.01%. This shows that while some sectors are witnessing price hikes, others like fuel and power are still on a downward trend.
Month-on-month increase
WPI food index rose by 1.85% YoY
On a month-on-month basis, the WPI rose by 0.25% in February compared to January. Mineral oils and manufactured products saw a price increase during this period while food articles and minerals witnessed a decline. The WPI food index rose by 1.85% year-on-year (YoY) in February despite its index level declining from January's 194.2 to February's 192.9 (2011-12 base year).