Consumer price index based retail inflation declined to 6.44% in February from 6.52% in January. Image for representation purpose only.
| Photo Credit: Reuters
India’s wholesale price inflation (WPI) moderated to 3.85% in February from 4.73% in January, with manufactured products’ inflation cooling from 3% in January to a little under 2%, and primary articles food and fuel and power inflation recording milder downturns in inflation month-on-month inflation.
Base effects also played a role as February 2022 had clocked a 13.43% uptick in wholesale prices.
Fuel and Power inflation eased slightly from 15.15% in January to a 14.8% price rise this February, compared to 30.8% in the same month of 2022. Inflation measured by the Wholesale Food Index dropped from 2.95% in January to 2.76% in February, the pace of decline slightly higher than witnessed in consumer food prices, which moved from 6% to 5.95% over the same period.
Onion prices continued to fall year-on-year for the 18th straight month since September 2021, with February 2023 recording the sharpest drop of 40.14% in wholesale prices amid this deflationary streak.
Vegetables inflation contracted for the fourth successive month with prices falling 21.5% from February 2022 levels. Potato prices which had been rising sharply since February 2022, with 11 successive months of double-digit inflation, slipped 14.3% in February 2023.
“Decline in the rate of inflation in February 2023 is primarily contributed by fall in prices of crude petroleum & natural gas, non-food articles, food products, minerals, computer, electronic & optical products, chemicals & chemical products, electrical equipment and motor vehicles, trailers & semi-trailers,” the Commerce and Industry Ministry said.
The deceleration in WPI comes in line with the dip in retail inflation, data of which was released on Monday.
Consumer price index based retail inflation declined to 6.44% in February from 6.52% in January.
In its monetary policy review last month, the Reserve Bank of India had hiked key interest rate by 25 basis points to 6.50%, saying core inflation still remains sticky.
(With PTI inputs)
