India’s wholesale price inflation (WPI) climbed to 2.38% in February 2025, slightly up from 2.31% in January, according to official data. The increase was primarily driven by rising prices of manufactured food products, textiles, and non-food articles.
Food prices played a significant role in this inflationary trend, with manufactured food products witnessing an inflation rate of 11.06%. The price of vegetable oils surged by 33.59%, while beverages also saw a modest increase of 1.66%. However, vegetable prices recorded a decline, with potato prices falling by 27.54%, a notable drop compared to the previous month’s figures.
The fuel and power category continued to experience deflation, though at a slower pace. In February, the sector registered a 0.71% decline, compared to a sharper 2.78% fall in January, suggesting some stability in energy costs.
On the other hand, retail inflation, measured by the Consumer Price Index (CPI), eased to 3.61%, marking a seven-month low. This decline was largely attributed to falling food prices, providing some relief to consumers despite the slight increase in wholesale inflation.
The rise in wholesale inflation indicates persistent price pressures in the economy, but the dip in retail inflation suggests that consumers may not feel the full impact just yet. If fuel prices remain stable and food costs continue to ease, inflationary pressures might moderate in the coming months.
