India WPI Inflation Eases To 0.2% In February

New Delhi: India's wholesale price-based inflation (WPI) eased to 0.2 percent in February as compared to 0.27 percent in January, data released by the Commerce and Industry Ministry showed on Thursday.

"The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 0.20% (Provisional) for the month of February, 2024 (over February, 2023). Positive rate of inflation in February, 2024 is primarily due to increase in prices of food articles, crude petroleum & natural gas, electricity, machinery & equipment and motor vehicles, trailers & semi-trailers etc," said an official release.

Fuel and power basket inflation eased to -1.59 percent last month from -0.51 percent in January. In manufactured products, inflation was -1.27 percent as against -1.13 percent.

The month over month change in WPI index for the month of February, 2024 stood at 0.07% as compared to January, 2024.

For the month of December, 2023 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 151.8 and 0.86% respectively. 

The other goods that recorded an increase in inflation during Feb include natural gas, electricity, machinery & equipment and motor vehicles, trailers & semi-trailers etc.

Suman Chowdhury, Chief Economist and Head -Research, Acuité Ratings & Research said, "The deflationary trend in manufacturing goods may reverse only gradually over the next few months. Overall WPI inflation print is expected will be shaped by the trend in the food category and in the absence of any major surprises, should remain range bound between 0%-1.0% over the next two quarters.”