Inflation moves up to 6.84% in February

After declining for four consecutive months, inflation rose marginally to 6.84% in February as food items such as rice, wheat, onions and fruits became costlier.

Inflation based on the Wholesale Price Index (WPI) had stood at 6.62% in January. In February, 2012, it was 7.56%.

The upward pressure on inflation may make it harder for the Reserve Bank to lower interest rates. It had projected March-end inflation at 6.8%.

Ahead of the monetary policy review next week, RBI Governor D Subbarao said yesterday that inflation reading of above 6 per cent demands tightening of the policy stance.

Meanwhile, as per official data released today the rate of price rise in the manufactured items category witnessed a slight decline at 4.51% last month.

Overall, inflation rate in food articles category, which has a 14.34% share in the WPI basket, too witnessed a decline at 11.38 per cent. Inflation in the food articles category was at 11.88% in January.

Onions were costlier by 154.33% for the month of February, as against the inflation rate of 111.52% in January.

Rice became costlier by 18.84% in February, as against 17.31% in the previous month. However, inflation in vegetables was at 12.11%, from 28.45% in January.

Inflation rate in wheat and cereals stood at 21.63% and 19.19% respectively in February.

Potato and pulses prices declined by 45.99 per cent and 14.96%, from 79% and 16.89% respectively in January 2013.

While the inflation rate in egg, meat and fish category stood at 12.85%, for milk it was up 4.57%. Fruits were costlier by 8.93%.

For the fuel and power category, it was up by 10.47% in February, compared to 7.06% in January 2013.