WPI Data: Wholesale inflation accelerates to 2.13% in February 2026

India’s wholesale inflation rose to an 11-month high in February, reflecting stronger price pressures in manufactured goods and some primary commodities, even as fuel prices remained in negative territory. The increase also comes amid volatility in global commodity markets linked to the ongoing conflict involving Iran.

Data released by the Ministry of Commerce and Industry on Monday showed that the Wholesale Price Index (WPI) rose to 2.13 per cent in February, compared with 1.81 per cent in January and 0.96 per cent in December. Wholesale inflation was 2.45 per cent in February last year.

The latest reading marks the fourth straight monthly increase in wholesale inflation, indicating a gradual build-up of price pressures across the economy.

Add Zee Business as a Preferred Source

Manufactured products drive the rise

Manufactured products — which carry the largest weight in the WPI basket — were the biggest contributor to February’s rise in inflation.

Inflation in this segment increased to 2.92 per cent in February, slightly higher than 2.86 per cent in January and 2.03 per cent in December. Government data said the rise was largely due to higher prices in other manufacturing, basic metals, non-food articles, food articles and textiles.

Primary articles see sharp increase

Inflation in primary articles, which include agricultural commodities and minerals, rose to 3.27 per cent in February, compared with 2.21 per cent in January and 0.21 per cent in December.

However, on a month-on-month basis the category declined 0.52 per cent, mainly due to lower prices of food articles and minerals. Food articles fell 1.33 per cent and mineral prices declined 1.21 per cent during the month.

At the same time, crude petroleum and natural gas prices rose 4.17 per cent, while non-food articles increased 0.83 per cent.

Food inflation rises moderately

Food inflation under WPI rose to 1.85 per cent in February, up from 1.41 per cent in January.

Within the food basket, vegetable inflation eased to 4.73 per cent from 6.78 per cent a month earlier. However, prices of pulses, potato, eggs, meat and fish recorded higher inflation compared with January.

Fuel and power remain in deflation

The fuel and power category continued to exert downward pressure on wholesale inflation. Prices in this segment remained in deflation at –3.78 per cent in February, although the decline was slightly less severe than –4.01 per cent in January.

On a month-on-month basis, however, the fuel and power index increased 1.17 per cent, indicating some recovery in energy prices.

Global risks add uncertainty

Inflation expectations are also being influenced by developments in West Asia. The conflict involving Iran, Israel and the United States has raised concerns about global oil supply disruptions.

Shipping disruptions near the Strait of Hormuz, a key passage for global crude shipments, have added to supply risks. Nearly one-fifth of global oil trade passes through the waterway, making it a critical chokepoint for energy markets.

Retail inflation and policy outlook

Separate data released earlier showed that India’s retail inflation, measured by the Consumer Price Index, rose to 3.2 per cent in February, up from 2.75 per cent in January.

The Reserve Bank of India mainly tracks retail inflation while deciding policy interest rates. The central bank has reduced policy rates by 1.25 percentage points in the current fiscal year, as inflation remained relatively contained.