India Wholesale Price Inflation Accelerates

India’s wholesale price inflation accelerated more than expected in February, preliminary data from the Ministry of Commerce and Industry showed Monday. The wholesale price index rose 13.11 percent year-on-year following a 12.96 percent increase in January. Economists had forecast 12.10 percent inflation.

The high rate of inflation in February was primarily due to rise in prices of mineral oils, basic metals, chemicals, crude petroleum & natural gas, food articles and non-food articles etc. as compared to the corresponding month of the previous year, the ministry said. The food index of the WPI climbed 8.47 percent annually after a 9.55 percent increase in January. The fuel and power index surged 31.5 percent year-on-year following a 32.27 percent increase in the previous month. The manufactured products inflation climbed to 9.84 percent from 9.42 percent. Compared to the previous month, wholesale prices rose 1.4 percent in February after a 0.28 percent fall in each of the previous two months. Prices increased for the first time in three months.