India's WPI Inflation Surges to 13.11% In February, Remains In Double Figures For 11th Month

The annual wholesale price-based retail records inflation in the market, as the World Price Index (WPI), increased to 13.11 per cent in February from 12.96 per cent from the previous month, as reported by the government data released on Monday (March 14). This substantial increase in WPI is linked to rising crude oil and non-food prices amid the global pandemic and the ongoing war in Europe between Russia and Ukraine. According to the data, WPI inflation has remained in double digits for the 11th month in a row, beginning in April 2021. In February of last year, the WPI was 4.83 per cent higher than in February of the previous year. On the other hand, food inflation fell to 8.19 per cent in February from 10.33 per cent in January. In February, vegetable inflation was 26.93 per cent, down from 38.45 per cent the previous month.

Commerce and Ministry Statement On Inflation

The Commerce and Industry Ministry, as reported by The Financial Express, stated: "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."

Inflation Effects on Goods

Inflation in manufactured goods was 9.84 per cent, up from 9.42 per cent between January-February. The month also witnessed an increase in the fuel and power basket by 31.50 per cent, with crude petroleum inflation reaching 55.17 per cent- up from 39.41 per cent the previous month amid the increase in crude oil prices on the global scale. Meanwhile, the Reserve Bank of India (RBI) kept its key repo rate at 4 per cent for the tenth time in a row last month in order to support growth while also managing inflationary pressures.

WPI Major Parts

The major producer of WPI, including primary articles, fuel power, and manufactured products, has faced an increase as well. The primary articles- 165.0 (provisional) in January 2022, increased by 1.09 per cent to 166.8 (provisional) in February 2022. Fuel power- has increased in February 2022, and the group increased by 4.35 per cent to 139.0 (provisional) from 133.2 (provisional) in January 2022. And the manufactured products- increased by February 2022 by 0.95 per cent to 138.4 (provisional) from 137.1 (provisional) in January 2022.

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