India’s February WPI Inflation Hits 4-Month Low at 0.20%

The Wholesale Price Index (WPI) is a measure of the change in the price of a basket of wholesale goods over time. It is an important economic indicator that reflects the average movement of wholesale prices in India. Here’s a breakdown of the details provided in the article:

1. February WPI Inflation at 0.20% versus 0.27% in January: This indicates that the rate of inflation, as measured by the Wholesale Price Index, decreased from 0.27% in January to 0.20% in February. This suggests a slowdown in the rate of increase in wholesale prices.

2.4-month low: The February WPI inflation rate of 0.20% represents a four-month low, indicating that wholesale price inflation has been relatively subdued compared to the previous four months.

3. Negative Zone April to October; Turned Positive in November: The WPI inflation was negative (indicating deflation) from April to October but turned positive in November at 0.26%. This suggests a shift in the trend from decreasing prices to increasing prices.

4. Food Inflation: Food inflation, which measures the rate of change in food prices, increased marginally to 6.95% in February from 6.85% in January. This indicates that the rate of increase in food prices slightly accelerated from January to February.

5. Inflation in Vegetables: The inflation rate for vegetables was 19.78% in February, up slightly from 19.71% in January. This suggests that vegetable prices continued to rise, albeit at a slightly faster pace in February compared to January.

6. Inflation in Pulses: The inflation rate for pulses was 18.48% in February, higher than the 16.06% recorded in January. This indicates a faster rate of price increase for pulses in February compared to January.

Overall, the February WPI data suggests that while overall wholesale price inflation remained relatively low, there were slight increases in food prices, particularly in vegetables and pulses, contributing to the overall inflation rate. These details provide insight into the dynamics of wholesale price movements and their impact on the broader economy, particularly on sectors related to food production and consumption.

Also Read: Sam Altman’s Text to Elon Musk Sparks Response Amid OpenAI Lawsuit