Friday, March 24, 2023

Wholesale prices at two-year low of 3.9 per cent – Usky News

New Delhi: The bulk Price-based inflation eased to a nearly two-year low of 3.9% in February on a easing in prices of manufactured goods, fuel and electricity, although food items remained expensive.
This is the ninth consecutive month of decline in the Wholesale Price Index (WPI) based inflation rate. WPI inflation was 4.7% in January last year and 13.4% in February.
“The decline in the rate of inflation is mainly due to fall in the prices of crude petroleum and natural gas, non-food articles, food products, minerals, computer, electronic and optical products, chemicals and chemical products, electrical appliances and motor vehicles, trailers and semi-trailers,” the commerce and industry ministry said on Tuesday.
The 3.9% WPI inflation is the lowest since January 2021, when the rate of price rise on a wholesale basis was 2.5%.
Economists said the deceleration in the rate of price rise was mainly due to a favorable base effect, going forward softening commodity prices would help ease WPI inflation further.
However, the future course of food inflation will depend on meteorological conditions and timely monsoon.
While inflation moderated in manufactured goods, it rose from 2.4% in January to 3.8% in February in the case of food articles.
Inflation in pulses stood at 2.6 per cent, while it was -21 per cent in vegetables. 5%. Inflation in oilseeds stood at -7. 4% in February 2023 (see graphic).
Fuel and power basket inflation declined to 14.8% from 15.2% in the previous month. In manufactured products, it was 1.9% as against about 3% in January. The decline in WPI is in line with the decline in retail inflation.


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