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India's WPI Inflation Hits 11-Month High
17 Mar
Summary
- Wholesale prices in India reached 2.13% in February, an 11-month peak.
- Higher costs for food and non-food articles fueled the inflation surge.
- Economists predict further acceleration due to rising input and energy costs.
India's wholesale price inflation reached a new 11-month high of 2.13% year-on-year in February. This acceleration was primarily driven by the increased costs of primary goods, including both food and non-food articles. The Wholesale Price Index (WPI), which had previously seen a rare contraction, now indicates a firming inflationary trend.
Economists predict this upward pressure on WPI inflation is likely to persist in the upcoming months. Factors contributing to this outlook include elevated energy prices, stemming from ongoing geopolitical tensions in the Gulf region, and rising input costs for various industries.
Projections suggest WPI inflation could reach 3.7% in March, with estimates for FY27 around 3.5%, contingent on average Brent crude prices between $60 and $70 per barrel. Manufacturing products, which constitute a significant portion of the WPI basket, also saw a slight increase in prices in February.
