India’s wholesale price-based inflation accelerated to 13.11 per cent in February from a year ago, compared to 12.96 per cent in the previous month, government data showed on Monday.
That was largely driven by higher fuel prices, up 31.50 per cent year-on-year, versus 32.27 per cent in January.
The government data released on Monday showed WPI inflation has remained in double digits for the eleventh month in a row, beginning April last year.
“Clearly, the data reinforces the presence of inflationary pressures in the manufacturing and the services sector,” said Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research.
“While the sharp rise in crude oil prices and the breach of $100 per barrel consequent to the intensification of the Russia-Ukraine conflict began only at the end of February-22, there has been an uptrend in commodity prices since January-22 and this is visible in both the sequential rise in primary commodities and fuel and power index,” he added.
Inflation last month was 12.96 per cent, while in February last year, it was 4.83 per cent.
Inflation in food articles, however, eased to 8.19 per cent in February from 10.33 per cent. Vegetable inflation was 26.93 per cent in February, against 38.45 per cent in the previous month.
“The high rate of inflation in February 2022 is primarily due to rise in prices of mineral oils, basic metals, chemicals and chemical products, crude petroleum & natural gas, food articles and non-food articles etc. as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said in a statement.
Inflation in manufactured items was 9.84 per cent in February, against 9.42 per cent in January.
In the fuel and power basket, the rate of price rise was 31.50 per cent during the month.
Inflation in crude petroleum spiked to 55.17 per cent during February, against 39.41 per cent in the previous month, on rising crude oil prices globally.
“Clearly, this upward momentum is set to continue in March-22 as the crude oil (Brent) prices have shot up further and is currently hovering close to $110 per barrel. The inflation levels would have been slightly higher had there not been a sequential price contraction in the wholesale food category driven by the seasonal drop in vegetable and potato prices,” said Mr Chowdhury.
“The inflation in manufactured products have risen sequentially to almost 1.0 per cent and also increased on a YoY basis to 9.8 percent,” he added .
Last month, the Reserve Bank kept its key repo rate at which it lends short-term money to banks unchanged for the 10th time in a row at 4 per cent to support growth and manage inflationary pressures.
