Wholesale Price Index Records Fourth Straight Monthly Rise

India’s wholesale inflation rate rose to 2.13 per cent in February, reaching its highest level in the past 11 months. The increase marks the fourth consecutive month of growth in the country’s Wholesale Price Index (WPI). In January, the wholesale inflation rate stood at 1.81 per cent. According to the latest data, the rise in wholesale inflation has largely been driven by higher prices of food items and other industrial goods. While vegetable prices showed some easing compared with the previous month, the cost of items such as pulses, potatoes, eggs and meat increased during the period. Economists believe inflationary pressures could intensify in the coming months. One of the key factors is the continued rise in global crude oil prices, which crossed the $100 per barrel mark in March. Since wholesale inflation is closely linked to global commodity prices, rising oil costs are expected to impact other sectors, including fertilisers and metals. Analysts say disruptions in oil supply due to the ongoing conflict between the United States and Iran have contributed to the surge in global crude prices, further influencing inflation trends. Economists noted that although retail prices of petrol and diesel for consumers may not increase immediately, the effect is likely to be significant at the wholesale level. Some estimates suggest that wholesale inflation could climb to around 3.7 per cent in March. Representatives from the industrial sector have urged the government to focus on strengthening supply chains and reducing operational costs for industries in order to mitigate the impact of rising prices. While the Reserve Bank of India primarily monitors retail inflation when determining interest rates, the current rise in wholesale inflation is being viewed as a potential challenge for the broader economy.