The annual rate of inflation based on the Wholesale Price Index (WPI) is 2.38% for the month of February, according to data released by the Ministry of Commerce and Industry on Monday. &nbsp;
The month-over-month change in WPI for the month of February was a marginal 0.07% higher compared to the corresponding figure of 2.31% during January.&nbsp;
&ldquo;The positive rate of inflation in February is primarily due to increase in prices of manufacture products and food articles compared to the same month of the previous year,&rdquo; according to the official statement.
Month-on-month food inflation in February declined as prices fell by 2.05% compared to January this year.
However, WPI inflation in the fuel and power group increased by 2.12% in February over January.
Similarly, the index for manufactured products group increased by 0.42% in February compared to January.
The final WPI inflation rate for the month of December has been revised to 2.57%, the figures showed.&nbsp;
Meanwhile, the year-on-year inflation rate based on the Consumer Price Index (CPI) has eased to a 7-month low of 3.61% in February this year, which is 0.65 per cent lower than the corresponding figure for January, as food prices came down further during the month, according to figures released last week,
The Reserve Bank of India (RBI) uses the CPI inflation rate to formulate its monetary policy as this is based on the actual prices that consumers pay in the market.&nbsp;
The food inflation in February has come down to the lowest level since May, 2023 and is 222 basis points lower in comparison to January, according to the official statement.
Prices of fuel came down during the month, easing the burden on household budgets with inflation being recorded at -1.33% during February.
As the retail inflation is continuing with its downward trend and has fallen below the RBI&rsquo;s targeted level of 4 per cent, the central bank will have more headroom to go for a rate cut to propel economic growth and create more jobs.
RBI Governor Sanjay Malhotra last month announced a 25 basis points cut in the policy rate from 6.5% to 6.25% in the monetary policy review to accelerate growth amid global uncertainties.&nbsp;
He said that inflation has declined and is expected to further moderate and gradually align with the RBI&rsquo;s target of 4%.
The monetary policy decision maintains a delicate balance between controlling inflation and pushing up the growth rate in a slowing economy,&nbsp;
The MPC also unanimously decided to continue with its neutral stance in monetary policy and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, Malhotra said.&nbsp;
&mdash;IANS

WPI inflation in the fuel increased by 2.12%  (File Photo)

The positive rate of inflation in February is due to increase in price of manufacturing products & food articles

India's WPI Inflation Rises to 2.38% in February 2025

The positive rate of inflation in February is due to increase in price of manufacturing products & food articles

March 17, 2025 | 16:24 IST