India’s wholesale price inflation rate slightly higher at 0.20% in February

India’s wholesale price inflation, based on the Wholesale Price Index (WPI) increased by 0.20 per cent year-on-year in February 2024, provisional figures released by the commerce ministry showed.

The positive, though lower, rate of inflation in February 2024 was primarily due to increase in prices of food articles, crude petroleum and natural gas, electricity, machinery and equipment and motor vehicles, trailers and semi-trailers etc. 

Inflation rate for the primary articles group, which has a weight of 22.62 per cent in the Wholesale Price Index (WPI) increased by 0.22 per cent in February 2024, due primarily to increase in the prices of minerals (2.80 per cent), crude petroleum and natural gas (2.18 per cent) and food articles (0.26 per cent). Prices of non-food articles (-1.73 per cent) declined in February 2024 from the January 2024 levels.

Inflation rate for the fuel and power group (weight of 13.15 per cent in WPI) increased by 0.19 per cent due to higher prices of electricity (0.77 per cent) and mineral oils (0.06 per cent). Prices of coal (-0.15 per cent) declined in February 2024 from the January 2024 levels.

Inflation rate for the manufactured products group (weight of 64.23 per cent in WPI) remained unchanged in February 2024 compared to January 2024. Out of the 22 NIC two-digit groups for manufactured products, 10 groups witnessed increase in prices whereas 8 groups witnessed decrease in prices, and 4 groups remained constant. 

Some of the important groups that showed month-over-month increase in prices are textiles, pharmaceuticals, medicinal, chemical and botanical products, motor vehicles, trailers and semi-trailers, electrical equipment, tobacco products, etc. 

The groups that witnessed a decrease in prices include basic metals, other non-metallic mineral products, fabricated metal products (except machinery and equipment), rubber and plastic products and printing and reproduction of recorded media, etc.

Food price inflation based on the WPI Food Index (weight of 24.38 per cent), consisting of 'food articles' from the primary articles group and 'food product' from the manufactured products group increased to 4.09 per cent in February 2024 from 3.79 per cent in January 2024.

The final rate of inflation based on the revised index for December 2023 (Base Year: 2011-12=100) stood at 0.86 per cent.