WPI Increases to 11-month High of 2.13% in February
This is the fourth straight month of rise in wholesale price index or WPI-based inflation. As per the data released by the commerce ministry, food inflation stood at 1.85 per cent during the month
New Delhi: With the rise in prices of food and non-food articles, India’s wholesale price inflation accelerated to a 11-month high of 2.13 per cent in February as compared to 1.81 per cent in January. Even though vegetable prices eased on a month-on-month basis, the mixed trends were seen across major categories in the wholesale basket, the government data showed on Monday.
This is the fourth straight month of rise in wholesale price index or WPI-based inflation. As per the data released by the commerce ministry, food inflation stood at 1.85 per cent during the month. “Although in vegetables, inflation eased to 4.73 per cent in February against 6.78 per cent in January, pulses, potato and egg, meat and fish saw an uptick in inflation in February. “Prices in primary articles, however, rose 3.27 per cent, indicating firmness in several agricultural commodities,” the ministry data showed.
Issuing a statement, the ministry said that the positive rate of inflation in February 2026 is primarily due to an increase in prices of other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles, etc. “Inflation in manufactured products inched up to 2.92 per cent in February, from 2.86 per cent in the preceding month, while non-food articles category inflation spiked to 8.80 per cent in February, from 7.58 per cent in January,” the data showed.
While experts and analysts said the WPI inflation is likely to pick up pace further, if the oil price rise persists, and spills over to other goods (fertilisers, aluminium) given it tracks international prices more closely relative to the CPI basket. The data also showed that negative inflation, or deflation, in the fuel and power basket narrowed to 3.78 per cent in February, vis-a-vis 4.01 per cent in January with global oil prices averaging $68/bbl in February from $63/bbl in January.
However, Barclays in a research note said the pass-through of the rise in crude oil prices from the Middle East conflict will reflect more in WPI inflation vs retail CPI inflation, as retail fuel prices are unchanged in the latter. “With a sharp jump in crude oil prices crossing $100/bbl as of 16 March, the corresponding WPI will likely reflect this in the March print,” Barclays said.
India Ratings and Research the rising crude oil prices since the US-Iran war will have a strong impact on wholesale inflation from March 2026, till the supply side issues are resolved. “The average price of Indian crude basket March 2026 (up to March 12) touched a 44-month high of $101.25/bbl. Ind-Ra chief economist Devendra Pant expects wholesale inflation to stay high amidst US-Iran war and a low base.
“The retail prices of petroleum products might remain the same for some time, which may negate any sharp jump in retail inflation. However, the increase in crude oil prices will push wholesale inflation higher. Ind-Ra expects wholesale inflation in March to jump to 3.7 per cent,” Pant said.
