Wholesale price inflation hits a 39-month high of 6.55% in February

India's wholesale price inflation (WPI) hit a 39-month high of 6.55 per cent in February as the pent-up demand during the demonetisation period pushed up prices of essential commodities, provisional figures released on Monday showed.

The annual rate of inflation based on the wholesale price index (WPI) stood at 5.25 per cent in January while it was (-) 0.85 per cent during February last year, official figures released by the commerce ministry showed.

Build up of inflation rate in the financial year so far was 5.82 per cent compared to a build-up rate of (-) 1.14 per cent in the corresponding period of the previous

Inflation rate for the `'primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, rose by 0.9 per cent year-on-year in February.

Among primary articles, inflation rate for the 'food articles' group rose 0.1 per cent in February due to higher prices of fruits and vegetables, jowar, poultry chicken, rice, bajra, ragi, fish, beef and buffalo meat. However, the prices of gram, arhar, condiments and spices, tea, urad, masur, moong, maize, wheat, egg, and coffee declined.

Inflation rate for the 'non-food articles'  group rose 1.5 per cent due to higher prices of flowers, copra (coconut), raw rubber, raw silk, raw cotton, gingelly seed and coir fibre, fodder, safflower, niger seed and cotton seed. However, the prices of linseed, rape and mustard seed, soyabean and mesta, sunflower, castor seed, raw wool, groundnut seed and hides (raw) declined.

Inflation rate for the 'minerals' group rose 9.0 per cent in February due to higher prices of manganese ore, crude petroleum, copper ore, chromite, iron ore and zinc concentrate. However, the price of sillimanite declined.

Inflation rate for the 'fuel and power' group, which has a weight of 14.91 per cent in WPI, rose 1.3 per cent in February due to higher prices of coking coal, aviation turbine fuel, bitumen, kerosene, high speed diesel, LPG and lignite. However, the price of furnace oil declined.

Inflation rate for the major group of `manufactured products' which has a weight of 64.97 per cent in the wholesale price index remained unchanged at its previous month's level.

Among manufactured products, the inflation rate for the 'beverages, tobacco and tobacco products' group declined by 0.2 per cent due to lower prices of zarda and beer. However, the prices of soft drinks, carbonated water and rectified spirit moved up.

Inflation rate for the 'textiles ' group rose 0.2 per cent in February due to higher prices of tyre cord fabric and manmade fabric. However, the prices of jute sacking cloth and jute sacking bag declined.

Inflation rate for the 'wood and wood products' group declined by  0.4 per cent in February due to lower prices of plywood and fibre board.

Inflation rate for the 'leather and leather products' group declined by 0.3 per cent due to lower price of leather footwear. However, the price of raw leather moved up.

Inflation rate for the 'rubber and plastic products' group rose 0.2 per cent due to higher prices of rubber products.

Inflation rate for the 'chemicals and chemical products' group rose 0.4 per cent due to higher prices of non-cyclic compound, turpentine oil, basic organic chemicals, synthetic resin, explosives, ayurvedic medicines and toilet soap.  However, the price of rubber chemicals and pesticides declined.

Inflation rate for the 'non-metallic mineral products' group rose 0.1 per cent due to higher prices of railway sleeper and grey cement. However, the prices of glass bottles, bottleware and marbles declined.

Inflation rate for the 'basic metals, alloys and metal products' group declined by 0.5 per cent due to lower prices of pig iron, pipes/tubes/rods/strips, GP/GC sheets and wire rods, pencil ingots, HRC and rounds, angles, sheets, CRC and rebars.  However, the prices of ferro chrome and steel castings, gold and gold ornaments, pressure cooker, silver, iron and steel wire, steel: pipes and tubes, ferro silicon and aluminium moved up.

Inflation rate for the 'transport, equipment and parts' group rose 0.5 per cent due to higher prices of auto rickshaw, tempo, matador and auto parts.

The final inflation rate for December based on the revised wholesale price index for all commodities stood at 3.64 per cent against the 3.39 per cent reported earlier.