WPI inflation rises to 13.11% in Feb, against 12.96% in January

Following Russia’s invasion of Ukraine, crude oil prices have skyrocketed – in March alone, they have surged about 35%.

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India economy | WPI inflation | Russia Ukraine Conflict

India’s annual wholesale price-based inflation (WPI) accelerated to 13.11 per cent in February from the previous month’s 12.96 per cent, government data showed on Monday.

February’s figure was higher than 12.10 per cent forecast in a Reuters poll of analysts, amid higher fuel prices, which were up 31.50 per cent on the year, versus 32.27 per cent in January.

WPI inflation has remained in double digits for the 11th consecutive month beginning April 2021. Inflation last month was 12.96 per cent, while in February last year, it was 4.83 per cent.

Inflation in food articles, however, eased to 8.19 per cent in February from 10.33 per cent. Vegetable inflation was 26.93 per cent in February, against 38.45 per cent in the previous month, PTI reported.

“The high rate of inflation in February 2022, is primarily due to rise in prices of mineral oils, basic metals, chemicals and chemical products, crude petroleum & natural gas, food articles and non-food articles etc as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said in a statement.

Inflation in manufactured items was 9.84 per cent in February, against 9.42 per cent in January. In the fuel and power basket, the rate of price rise was 31.50 per cent during the month.

Inflation in crude petroleum spiked to 55.17 per cent during February, against 39.41 per cent in the previous month, on rising prices of crude oil globally.

The Reserve Bank last month kept its key repo rate–at which it lends short-term money to banks–unchanged for the 10th time in a row at 4 per cent, to support growth as well as manage inflationary pressures.

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Following Russia’s invasion of Ukraine, crude oil prices have skyrocketed – in March alone, they have surged about 35 per cent – which will in turn push up fuel, transport and other related components of inflation this month.


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