Wholesale inflation slumps to 7-month low in February

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

On the basis of Wholesale Price Index (WPI), inflation was 2.84% in January and 5.51% in February 2017. WPI inflation at 2.48% in February is the lowest in seven months. The previous low level was recorded in July at 1.88%. According to a government data released today, inflation in food articles slowed to 0.88% in February from 3% in the preceding month. Inflation in vegetables softened with annual inflation at 15.26% as against 40.77% in January.

While the rate of price rise in onion slowed, it increased in the case of another kitchen essential, potato. Inflation in pulses remained in the negative zone at (-)24.51% and so in cereals and wheat. WPI inflation in protein rich items like egg, fish and meat too was in the negative zone. 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.

The data also showed that the rate of price rise in manufactured items was higher compared to January. As per the data of Central Statistics Office (CSO), retail inflation measured in term of Consumer Price Index had dropped to a four-month low of 4.44% in February on cheaper food articles and lower cost for fuel.