Wholesale price inflation eases to 7-month low of 2.48%
Lower inflation in food and fuel took India's wholesale inflation in February to 2.48%, a seven-month low. In January, the annual rate of inflation based on the monthly Wholesale Price Inflation stood at 2.84%. Last February, it was 5.5%. The previous low of 1.88% was recorded in July. Though inflation in food items slowed, core inflation (or inflation in non-food manufactured products) increased sharply.
Inflation in food products eased in February
In February, Inflation in food products eased from 3% in the previous month to 0.88%. In vegetables, annual inflation slowed to 15.26% compared to 40.77% in January. Rate of inflation in onions eased too, but there was a simultaneous rise in that of potatoes. Inflation in pulses remained in the negative at -24.51%. Cereals, wheat and protein-rich items (egg, fish and meat) performed similarly.
Core WPI inflation rises to 42-month high of 3.9%
Inflation in fuel and power eased too, from 4.08% in January to 3.81% in February. However, in manufactured items, it rose from 2.78% to 3.04%. Core WPI inflation rose to a 42-month high of 3.9%, which "raises concerns regarding the sustainability of the subdued headline inflation print," said Aditi Nayar, principal economist at ICRA. Earlier this week, government data put retail inflation at 5.07%.
