Published: Wed, March 14, 2018
Business | By Tara Barton

Wholesale price inflation at a seven-month low of 2.48% in February

Wholesale price inflation at a seven-month low of 2.48% in February

Inflation based on wholesale prices eased to a seven-month low of 2.48% in February on cheaper food articles, including vegetables.

The latest inflation was in line with a 2.50 per cent increase forecast by economists in a Reuters poll.

Wholesale price inflation (WPI) was 2.84% last month and 5.51% in February 2017.

Wholesale food prices in February rose 0.07% year-on-year, compared with a 1.65% rise a month earlier, the data showed.

The index for this major group declined by 1.3% to 128 (provisional) from 129.7 (provisional) for the previous month.

Consumer Prices Show No Signs of Inflation Dangers
Soumya Kanti Ghosh, the state-owned lender said the 7.5 percent jump was due to steep growth in manufacturing and electricity. Besides, industry bodies yet again nudged RBI to lower interest rate as retail inflation fell to a 4-month low.

Inflation in protein rich items eggs, meat and fish fell 0.22% from a 0.37 % growth in January while that of fruits rose 6.13%, lower than 8.49% registered in the trailing month.

India's retail inflation rate, the main policy target for the Reserve Bank of India (RBI), declined for the second straight month in February, to 4.44 percent, but remained above the central bank's 4 percent medium-term target.

Inflation in pulses remained in the negative zone at (-) 24.51 per cent and so in cereals and wheat.

The index for "Manufacture of Tobacco Products" group rose by 0.9 percent to 152.7 (provisional) from 151.3 (provisional) for the previous month due to higher price of cigarette (2%) and biri (1%).

As per the data, inflation in "fuel and power" segment too eased to 3.81% in February compared to 4.08% in the previous month.

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