WPI Inflation Grows To 2.38 Per Cent In February Amid Increase In Fuel And Power Prices

February WPI Inflation 2025: The Ministry of Commerce & Industry released the wholesale price index (WPI) data for the month of February 2025 on March 17. The ministry said that the inflation based on all India Wholesale Price Index (WPI) number is 2.38 per cent (provisional) for the month of February.

Notably, the WPI has increased due to a rise in fuel and power prices along with higher costs in the manufacturing sector. On a month-on-month basis the WPI rate has risen by 0.7 per cent from 2.31 per cent in January.

The fuel and power index grew by 2.12 per cent to 153.8 (provisional) in February compared to 150.6 (provisional) in January 2025. The ministry stated that the increase was caused by a 4.28 per cent rise in the price of electricity and a 1.87 per cent rise in the price of mineral oils compared to January. The ministry added that coal prices remained the same in February.

The manufactured products index also surged 0.42 per cent to 143.8 (Provisional) in February, compared to 143.2(Provisional) in January. The ministry said that on a month-over-month basis manufacture of food products, basic metals and other non-metallic mineral products and chemicals and chemical products etc witnessed an increase in prices.

Notably, the WPI Food Index, which consists of food articles and manufactured food goods, bucked the trend and declined to 189 in February from 191.4 in January. The annual rate of inflation based on the WPI Food Index decreased from 7.47 per cent in January to 5.94 per cent in February.

Earlier on March 12, the Ministry of Statistics & Programme Implementation released the Consumer Price Index (CPI) data for the month of February. In February, the CPI inflation rate for February stood at 3.61 per cent. Notably the rate has declined for the first time in six months below the Reserve Bank of India's (RBI) target of 4 per cent. A decline in food prices contributed to the decline seen in food inflation as it decreased to 3.75 per cent in February from 5.97 per cent in January.

WPI and CPI are both measures of inflation. However, the two indices differ significantly as the CPI tracks inflation at the consumer level and the WPI measures inflation at the producer level. The WPI takes into account changes at the wholesale level and the CPI measures retail-level price changes.

The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting is slated to be held from April 7 to April 9. Earlier in February, the MPC cut its benchmark repo rate by 25 basis points, reducing it to 6.25 per cent from 6.5 per cent. Notably, this was the first rate cut in nearly five years.