Wholesale inflation eases to 3.85% in February

The wholesale price based inflation eased for the ninth consecutive month to 3.85% in February on easing prices of manufactured items and fuel and power, showed the government data released on Tuesday.

The wholesale price index (WPI) based inflation rate was 4.73% in January this year and 13.43% in February 2022.

Inflation in food articles, however, rose to 3.81% in February, as against 2.38% in January.

"Decline in the rate of inflation in February 2023 is primarily contributed by fall in prices of crude petroleum & natural gas, non-food articles, food products, minerals, computer, electronic & optical products, chemicals & chemical products, electrical equipment and motor vehicles, trailers & semi-trailers," the commerce and industry ministry said.

Inflation in pulses was 2.59%, while in vegetables was (-)21.53% Inflation in oil seeds was (-)7.38% in February 2023.

Fuel and power basket inflation eased to 14.82% from 15.15% in the preceding month. In manufactured products it was 1.94%, against 2.99% in January.

The deceleration in WPI comes in line with the dip in retail inflation, data of which was released on Monday.

Consumer price index based retail inflation declined to 6.44% in February from 6.52% in January.

In its monetary policy review last month, the Reserve Bank of India had hiked key interest rate by 25 basis points to 6.50%, saying core inflation still remains sticky.