New Delhi: Wholesale price index (WPI)-based inflation in India in February 2025 rose to 2.38 per cent. This was primarily due to an increase in fuel and power prices along with higher costs in the manufacturing sector. Data released by the Ministry of Commerce and Industry showed this. This is higher than the WPI rate in January which stood at 2.31 per cent.
The fuel and power index increased by 2.12 per cent to 153.8 (provisional) in February from 150.6 (provisional) for the month of January. This was driven by a 4.28 per cent increase in electricity prices and a 1.87 per cent rise in mineral oil prices.
The index for manufactured products increased by 0.42 per cent, with notable price hikes in the manufacture of food products, basic metals, non-metallic mineral products, and chemicals. However, the WPI Food Index, which includes food articles and manufactured food products, declined to 5.94 per cent in January from 7.47 per cent in February, partially offsetting the overall inflation rise.
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The month-on-month change in WPI for February stood at 0.06 per cent. India’s Consumer Price Index (CPI) inflation rate for February 2025 was 3.61 per cent, marking the first time in six months that it fell below the Reserve Bank of India’s (RBIs) target of 4 per cent. This decline was primarily driven by a sharp reduction in food prices, with food inflation decreasing to 3.75 per cent in February from 5.97 per cent in January.
The Index of Industrial Production (IIP), which measures the country’s industrial output, grew by 5 per cent in January 2025, up from 3.2 per cent in December 2024.
Wholesale Price Index (WPI) is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index (CPI) is a price index that calculates price changes of goods and services that a consumer has to pay in the retail market. The monetary police of Reserve Bank of India are made after reviewing the CPI.
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