WPI inflation eases to 2.26% in Feb

Wholesale price index (WPI) based inflation softened to 2.26% in February on the back of cheaper food items and vegetables, the government data showed on Monday.

In January, the WPI inflation stood at 3.1% and in the year-ago same period it was at 2.93%, as per the data from the commerce and industry ministry.

The WPI inflation for food articles for February 2020 came in at 7.79% as against 11.51% in the previous month.

The rate of price rise for onion and potato too came down to 162.30% and 60.73%, respectively as against 293.37% and 87.84% in January 2020.

Build up inflation rate in the current financial year so far was 1.92% compared to a build up rate of 2.75% in the year-ago period, it added.

In the fuel and power category, wholesale inflation during the month eased to 3.38% while for non-food articles it slowed to 6.82%.

For eggs, meat and fish category, the inflation went up to 6.88% and for manufactured products it was higher at 0.42%.

WPI inflation for LPG gas jumped to 21.85 per cent during the month as against 1.78% in January.

“The considerable decline in the WPI inflation in February 2020 is in line with our forecast, led primarily by food items, as well as a modest contribution of the correction in prices of crude oil and minerals, which would intensify in the ongoing month,” said Aditi Nayar, economist with ICRA.

In contrast, the core-WPI recorded a narrower disinflation in February 2020, which is expected to reverse reflecting the growing impact of the coronavirus outbreak on prices, demand and sentiment, she added.

This article is closed for comments.
Please Email the Editor

Printable version | Apr 11, 2021 7:25:34 PM |

Next Story