Potato, onion, fruits, milk became costlier as wholesale inflation also rises after retail

After retail inflation, Wholesale price inflation too surged in February, higher than the forecast given by economists in a Reuters poll.

After retail inflation, Wholesale price inflation too surged in February, higher than the forecast given by economists in a Reuters poll. WPI inflation rose to 2.93 percent in February as against a 10-month low of  2.76 percent in January, official data showed, on account of uptick in food and fuel prices.

The food prices last month surged 3.29 percent on-year as against a 1.84 percent rise a month earlier, the data showed.

The retail Inflation surged for the first time in four months as the year-on-year fall in food prices eased. CPI inflation stood at 2.57 percent in February compared to a revised 1.97 percent in January 2019.

Inflation of primary articles including kitchen essentials like potato, onion, fruits, and milk rose to 4.84 per cent during the month, compared to 3.54 per cent in January.

The data showed that wholesale-based price inflation for ‘fuel and power’ segment soared to 2.23 per cent in February as against 1.85 per cent in January 2019.

The Reserve Bank of India (RBI), which mainly factors in retail inflation based Consumer Price Index (CPI), had slashed  the key lending rate by 0.25 per cent in February.

Source: financialexpress.com

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