WPI Inflation February 2025: India's Wholesale Prices Rise to 2.38%, Food Inflation Drops, Fuel & Power Costs Surge

The Wholesale Price Index (WPI) inflation for February 2025 stood at 2.38% (provisional), marking a moderate increase compared to February 2024. However, the month-over-month (MoM) change was a marginal 0.06% rise from January 2025. The increase in manufactured products and fuel & power prices contributed to the inflation, while food articles and primary commodities saw a decline.

WPI Food Inflation Sees Notable Decline in February 2025

The WPI Food Index fell from 191.4 in January 2025 to 189.0 in February 2025. The annual food inflation rate dropped from 7.47% in January 2025 to 5.94% in February 2025, signaling a significant decline. This was mainly due to lower prices of essential food articles such as vegetables and grains.

Key Declines in Food and Primary Articles:

• Food Articles Index dropped by 2.05% in February 2025.
• Crude petroleum & natural gas declined by 1.46% from January 2025.
• Minerals and non-food articles saw a slight price dip of 1.26% and 0.36%, respectively.

Manufactured Products Continue to Drive WPI Inflation

The Manufactured Products Index (64.23% weight in WPI) increased by 0.42%, rising to 143.8 in February 2025 from 143.2 in January 2025. Among 22 manufacturing groups, 17 reported price increases, while 2 saw a decline and 3 remained unchanged.

Major Contributors to Inflation in Manufactured Goods:

• Food Products & Basic Metals witnessed a steady price increase.
• Chemicals, Non-Metallic Minerals, and Other Manufacturing Sectors also contributed to inflation.
• Wood and Leather Products were among the few categories that saw a decline in prices.

Fuel & Power Inflation Rises, Driven by Electricity Prices

The Fuel & Power Index (13.15% weight) increased by 2.12% in February 2025, reaching 153.8 from 150.6 in January 2025.

Key Factors Behind the Increase:

• Electricity prices surged by 4.28%.
• Mineral oils rose by 1.87%.
• Coal prices remained stable.

The Wholesale Price Index (WPI) for March 2025 will be released on April 14, 2025.  The February 2025 WPI inflation rate of 2.38% reflects a mixed trend across different commodity groups. While fuel and power prices saw a significant rise, primary articles, especially food items, recorded a price decline. The overall inflation trend will be closely monitored in the coming months, with the next data release expected to provide further insights into price movements across sectors.