At 3.85%, India's wholesale inflation falls to lowest since January 2021

Earlier on Monday, the government data showed that the Consumer Price Index (CPI)-based inflation was at 6.44% in February

India's Wholesale price index (WPI)-based inflation eased below the 4 per cent-mark in February and was recorded at 3.85 per cent, data released by the Ministry of Commerce and Industry showed on Tuesday. In January, the WPI inflation figure was 4.73 per cent. This is the lowest since January 2021 when the WPI inflation was 2.51 per cent.

"Decline in the rate of inflation in February, 2023 is primarily contributed by fall in prices of crude petroleum and natural gas, non-food articles, food products, minerals, computer, electronic and optical products, chemicals and chemical products, electrical equipment and motor vehicles, trailers and semitrailers," the ministry said in a press release. 

On month-on-month (MoM) basis, the WPI changed 0.20 per cent. 

"The rate of inflation based on WPI Food Index decreased from 2.95 per cent in January, 2023 to 2.76 per cent in February, 2023," the ministry said. 

Earlier on Monday, the government data showed that the Consumer Price Index (CPI)-based inflation was at 6.44 per cent in February. It remained above the Reserve Bank's comfort level of 6 per cent for the second month in a row.

The retail inflation rate for the food basket worked out to be 5.95 per cent in February, marginally low than 6 per cent in January. It was 5.85 per cent in February last year.

The data also revealed that inflation in rural areas was higher at 6.72 per cent during the month compared to 6.10 per cent in urban centres.

According to the data, vegetable prices dipped by 11.61 per cent on an annual basis, though it recorded a double-digit increase in spices (20.20 per cent) and cereals and products (16.73 per cent).