Priyanka
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Wholesale price inflation increased slightly to 2.38% in February 2025, compared to 2.31% in January, according to government data released on Monday. The rise in food product prices, including vegetables, oil, and beverages, contributed to this increase.
As per PTI news, Wholesale Price Index (WPI)-based inflation was significantly lower at 0.2% in February 2024. The Ministry of Commerce and Industry reported that the positive inflation rate in February 2025 was mainly due to higher prices of food items, non-food manufacturing goods, and textiles.
Vegetable Oil Prices Soar by 33.59%
- Manufactured food product inflation rose to 11.06% in February.
- Vegetable oil prices surged by 33.59% during the month.
- Beverage prices saw a slight increase of 1.66%.
- Vegetable prices moderated, and potato prices dropped from 74.28% in January to 27.54% in February.
- Fuel and power recorded deflation of 0.71%, compared to 2.78% deflation in January.
Retail Inflation Declined in February
Government data released on Wednesday showed that retail inflation, measured by the Consumer Price Index (CPI), declined to a 7-month low of 3.61% in February due to falling food prices. This marks a drop below the Reserve Bank of India's (RBI) comfort level of 4%.
Additionally, the Index of Industrial Production (IIP) increased to 5%, indicating stronger performance in the manufacturing sector. The significant drop in retail inflation has fueled expectations that the RBI might cut its policy rate in the upcoming monetary policy review on April 9.
