Ira Singh
Khabar Khabaron Ki,18 March’25
India’s wholesale inflation increased to 2.38% in February from 2.31% in January, mainly due to higher prices of some vegetables and fruits, according to recent government data. The inflation rate, which reflects the cost of goods for producers, was slightly higher than the 2.36% predicted by economists, as per recent poll.
Food Prices Show Mixed Trends
According to official data, wholesale food prices rose by 5.94% in February, though this was lower than the 7.47% increase recorded in January. Vegetable prices dropped by 5.80% after rising by 8.35% in the previous month. However, certain food items, such as potatoes, onions, and fruits, saw price increases ranging from 21% to 48%.
Cereal prices also went up by 6.77% in February, compared to a 7.33% rise in January. Meanwhile, prices of manufactured goods, which make up about 64% of the wholesale price index, increased by 2.86%, slightly more than the 2.51% rise in January.
Fuel and Power Prices Decline
Prices in the fuel and power sector continued to fall, dropping 0.71% in February compared to a 2.78% decrease in January. This decline may help control inflation in the coming months, according to analysts.
Retail Inflation Falls Below 4%
Despite the rise in wholesale inflation, India’s retail inflation—measured by the Consumer Price Index (CPI)—fell below the Reserve Bank of India’s (RBI) target of 4% in February. This decline was mainly due to lower vegetable prices, according to official figures released last week.
With inflation showing different trends at the wholesale and retail levels, expectations for interest rate cuts by the RBI in the coming months have increased. Experts believe that improved supply conditions and stable global prices will play a key role in controlling inflation.