New Delhi, Mar 14 (FN Agency) The Wholesale Price Index (WPI) based inflation moderated further to 0.20 percent in the month of February this year compared to 0.27 percent in the preceding month, according to provisional data released by the Ministry of Commerce and Industry. “The annual rate of inflation based on all India WPI number is 0.20 percent (Provisional) for the month of February, 2024 (over February, 2023). Positive rate of inflation in February, 2024 is primarily due to increase in prices of food articles, crude petroleum and natural gas, electricity, machinery and equipment and motor vehicles, trailers and semi-trailers etc.,” it said.
The WPI Food Index, weight of 24.38 percent, consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group has increased from 178.0 in January, 2024 to 178.3 in February, 2024. The rate of inflation based on WPI Food Index increased from 3.79 percent in January, 2024 to 4.09 per cent in February, 2024. On annual basis the inflation of Food articles stood at 6.95 percent in February 2024 over 3.81 percent in the same month last year. Major reason for increase in food articles is rise in prices of Onion, Potatoes, Vegetables, pulses and Paddy. Rise in prices of these articles was in double digit in the month of February this year.
The Fuel and Power segment registered a contraction of 1.59 percent in WPI based inflation during February 2024 compared to whopping 13.96 percent in the corresponding month last year. The Reserve Bank of India, in its last month Review of Monetary Policy, had highlighted large and repetitive food price shocks as one of the biggest risks to the ongoing disinflation trend. The Geo-political situation and their influence on supply chains combined with volatility in international financial markets and commodity prices were key sources of upward risk to inflation. The Central bank had however stated that it expects inflation to be 5 percent in the current quarter of 2023-24 financial year.