February Sees Slight Rise in Wholesale Price Inflation

In February, wholesale price inflation rose to 2.38% from 2.31% in January, driven by pricier manufactured food items. Vegetable oil prices surged by 33.59%, while beverages saw a minor increase. Retail inflation also eased as Consumer Price Index dropped to a 7-month low.

The wholesale price inflation rate in February experienced a slight uptick to 2.38%, as reported by government data on Monday. The increase is attributed mainly to a rise in costs of manufactured food items, including vegetable oil and beverages.

This represents a marginal rise from the January inflation rate of 2.31%. Compared to February 2024, which had an inflation rate of 0.2%, the month shows a significant climb. The Ministry of Commerce & Industry attributes the inflation rate to price hikes across various sectors, including food products, non-food items, and textiles.

Notably, manufactured food products rose to an inflation rate of 11.06%, with vegetable oil seeing a sharp increase of 33.59%. In contrast, deflation was noted in the fuel and power segment at 0.71%, following a higher deflation rate of 2.78% in January.

(With inputs from agencies.)