Feb WPI inflation eases to 4.68% Vs 5.05% in Jan

The wholesale price-indexed (WPI) inflation for the month of February came in at a nine-month low of 4.68 percent as prices of kitchen staples like onion and potato eased, providing some headroom for the RBI to cut interest rate in its forthcoming monetary policy. A CNBC-TV18 poll of economists had pegged the number at 4.9 percent. The food inflation, based on Wholesale Price Index (WPI), dropped to 8.12 per cent in February, compared to 8.8 per cent in the previous month as the rate of price rise slowed in almost all items, except fruits and milk.The February core inflation came in at 3.2 percent versus 3 percent a month ago. Inflation, which is on decline since December, was 5.05 per cent in January. Prior to February, the lowest WPI was recorded in May 2013 at 4.58 per cent. In June, it had inched up again to 5.16 per cent.

Also Read: Jan IIP at 0.1%, Feb CPI inflation falls to 8.10%As per the data released today, rate of price rise for onions - on annual basis - contracted 20.06 per cent in February. Similarly rate of price rise in potato slowed to 8.36 per cent. The overall inflation in the vegetable basket dropped to 3.99 per cent, from 16.6 per cent in January. There was also a drop in prices of pulses, cereals and wheat. However, fruits, milk and other protein-rich items like egg, fish and meat became costlier in February compared to the previous month. Inflation in fruits was 9.92 per cent as against 5.32 per cent in January and in milk it was 8.45 per cent compared to 7.22 per cent. Inflation in the manufactured items, like sugar and edible items, was 2.76 same as in January. Meanwhile, December inflation has been revised upwards to 6.4 per cent, from 6.16 per cent estimated earlier.

(With inputs from PTI)