PTINew Delhi: India's wholesale inflation inched up marginally to 2.4% in February from 2.3% in January, as a decline in food prices was countered by a rise in non-food items, official data released Monday showed.
"The downward pressure on the headline print on account of the dip in food inflation was offset by the narrowing deflation in the fuel and power segment, and an uptick in the core (non-food manufacturing) WPI inflation to a 24-month high of 1.3%," said Rahul Agrawal, senior economist at ICRA.
The Wholesale Price Index (WPI), which tracks changes in producer prices, was 0.2% in February 2024.
Retail inflation fell to a seven-month low of 3.6% in February, driven by a decline in food prices, according to official data released last week.
"WPI inflation has remained steady with food articles, in particular, giving support," said Madan Sabnavis, chief economist at Bank of Baroda. WPI food inflation declined to a six-month low of 5.9% in February.
Vegetable and pulses inflation contracted by 5.8% and 1%, respectively, in February. In contrast, fruit prices surged 20.9%.
Inflation in manufactured products, which make up 64.23% of the WPI, increased to 2.9% in February from 2.5% in the month before. Within manufactured goods, vegetables & animal oils and fats recorded the highest inflation of 33.6%, followed by food products manufacturing at 11.1%.
Sabnavis said the rise in edible oil is partly due to weaker rupee as imports are high.
Outlook
ICRA expects WPI inflation to ease in March, supported by strong output and fresh arrivals, and print at the level seen in February. Bank of Baroda expects it to remain below 3% in March.
"The downward pressure on the headline print on account of the dip in food inflation was offset by the narrowing deflation in the fuel and power segment, and an uptick in the core (non-food manufacturing) WPI inflation to a 24-month high of 1.3%," said Rahul Agrawal, senior economist at ICRA.
The Wholesale Price Index (WPI), which tracks changes in producer prices, was 0.2% in February 2024.
Retail inflation fell to a seven-month low of 3.6% in February, driven by a decline in food prices, according to official data released last week.
"WPI inflation has remained steady with food articles, in particular, giving support," said Madan Sabnavis, chief economist at Bank of Baroda. WPI food inflation declined to a six-month low of 5.9% in February.
Vegetable and pulses inflation contracted by 5.8% and 1%, respectively, in February. In contrast, fruit prices surged 20.9%.
Inflation in manufactured products, which make up 64.23% of the WPI, increased to 2.9% in February from 2.5% in the month before. Within manufactured goods, vegetables & animal oils and fats recorded the highest inflation of 33.6%, followed by food products manufacturing at 11.1%.
Sabnavis said the rise in edible oil is partly due to weaker rupee as imports are high.
Outlook
ICRA expects WPI inflation to ease in March, supported by strong output and fresh arrivals, and print at the level seen in February. Bank of Baroda expects it to remain below 3% in March.
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