Following Russia’s invasion of Ukraine, crude oil prices have skyrocketed – in March alone, they have surged about 35%.
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.
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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.