India’s Feb wholesale inflation eases to lowest in over 2 years

Workers transport sacks that are loaded on a cart at a wholesale market in the old quarters of Delhi, India, December 7, 2022. REUTERS/Anushree Fadnavis

NEW DELHI  -India’s annual wholesale price-based inflation (WPI) eased to the lowest in over two years, dragged down by a fall in overall input costs for manufacturers on the back of favourable commodity prices.

WPI in February eased to 3.85 percent year-on-year, compared with 4.73 percent in the previous month.

It was below the Reuters forecast of 4 percent, and also marked the lowest since January 2021, when it recorded 2.51 percent.

In February food index rose 2.76 percent year-on-year, from 2.95% in January, while fuel and power rose 14.82 percent from 15.15 percent.

Decline in the rate of inflation was broad based primarily driven by fall in prices of crude, energy prices, non-food and food articles, the government said in the statement.

Data released on Monday showed India’s annual retail inflation eased to 6.44 percent in February, helped by a fall in the price of some food items.

However, concerns about price pressures remain as retail inflation was above central bank’s upper tolerance of 6% for the second consecutive month, with core inflation remaining sticky.