Retail inflation up at 3.65 per cent, wholesale at 6.55 per cent in February

According to CPI data, the rise in retail inflation was mainly due to a surge in the annual food inflation by 2.01 pc last month from 0.61 pc in January. The CPI data revealed that the annual retail inflation for rural India was 3.67 pc while that for the urban centres was 3.55 pc. 

The annual food inflation was 2.08 pc in rural areas and 1.87 pc in the urban areas.  Even after the rise, the annual retail inflation is still below the upper tolerance level of six pc. 

The government target is four pc plus-or-minus two percentage points for the next five years. The official data disclosed that prices of vegetable plunged by (-)8.29 pc on a year-on-year (YoY) basis, whereas cost of pulses and its products was lower by (-)9.02 pc.  

However, the prices of milk and milk-based products surged by 4.22 pc. Other protein-based food items such as meat and fish became dearer by 3.50 pc. Besides, eggs became a shade expensive by 0.54 pc and the cost of spices rose by 3.82 pc. 

Edible oils and fats prices increased by 3.83 pc, whereas those for sugar and confectionery edged up by 18.83 pc on a YoY basis. The cost of cereals and its products appreciated by 5.30 pc and prices of fruits were up by 8.33 pc. Among the states, the retail inflation was lowest in Chhattisgarh, at 0.61 pc, followed by Assam at 1.28 pc, and Odisha at 1.61 pc.  On the flip side, it was as high as 7.14 pc in Jammu and Kashmir, 6.16 pc in Himachal Pradesh and 6.11 pc in Delhi.

India’s annual rate of inflation based on wholesale prices rose to over a three-year high of 6.55 pc in February owing to costlier food and fuel, from 5.25 pc in the previous month, even as February’s retail inflation also climbed over the previous month to 3.65 pc. The Wholesale Price Index (WPI) data released by the Commerce and Industry Ministry, the annual inflation rate was (-)0.85 pc in February 2016. The wholesale inflation for food articles rose by 2.69 pc during the month under review from (-)0.56 pc in January. But, expenses on primary articles, which constitute 20.12 pc of the WPI’s total weight, rose by 5 pc during February.