India's WPI inflation rises to 4.17% because of food & crude prices

New Delhi, 15th March 2021:  The wholesale price-based inflation climbed for the second consecutive month in February to 4.17 per cent, as food, fuel and power prices rose. The WPI inflation was 2.03 per cent in January 2021 and was 2.26 for the same period last year. This is the highest in the last 27 months.

 

The Wholesale price index (WPI) inflation numbers are being released by the Economic Adviser, Department for Promotion of Industry and Internal Trade for the month of February 2021. 

 

 

A wholesale price index (WPI) is an index that calculates and records the changes in the price of goods at wholesale level. This refers to goods that are sold in bulk and traded businesses to businesses (bnot between retailers and ultimate consumers). Normally expressed as a percentage, the WPI shows the  average price change of goods. It is usually seen as an indicator of level of inflation in the country.

 

 

The WPI for food articles which was (– 0.92) in December 2020 & (-2.80) in January 2021 rose to (1.36) in February 2021. Crude Petroleum & Natural Gas which was experiencing reduction in prices also jumped to (7.18) in February 2021 from (-10.31) in January 2021 followed by surge in global crude prices.

 

 

 

The WPI for the manufactured products rose by 0.64 percent to 125.7 in February 2021 from 124.9 in January 2021. Manufactured products inflation stood at 5.81 percent compared to 5.13 percent in the previous month.

 

 

The Reserve Bank of India (RBI) in its monetary policy decision on 5th February 2021, kept interest rates constant for the fourth consecutive meeting and saying that the near-term inflation view has turned favourable.

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