India’s annual inflation rate, based on the Wholesale Price Index (WPI), climbed to 2.38% in February 2025, compared to 2.31% in January 2025, according to data released by the Ministry of Commerce & Industry.
The increase in WPI inflation was primarily driven by higher prices in the manufacturing sector, food products, and non-food articles. However, fuel and power prices remained subdued, contributing to a relatively moderate overall inflation level.
Breakdown of WPI Inflation Across Key Categories
- Primary Articles: Inflation for primary articles stood at 2.81%, down from 4.69% in January 2025. This decline was due to lower prices of food articles (-2.05%), crude petroleum & natural gas (-1.46%), and minerals (-1.26%).
- Fuel & Power: The index for this category rose by 2.12% month-over-month, though the year-on-year inflation remained negative at -0.71%. Electricity prices surged by 4.28%, while mineral oil prices increased by 1.87%.
- Manufactured Products: The inflation rate in this segment rose to 2.86% in February 2025, up from 2.51% in January 2025. Key contributors were basic metals, food products, and chemicals.
- Food Index: Inflation in the food index declined to 5.94% in February 2025, compared to 7.47% in January 2025, largely due to falling prices of vegetables and pulses.
Month-over-Month Changes
The WPI increased marginally by 0.06% in February 2025 compared to January 2025, signaling a slight uptick in wholesale prices after consecutive months of decline.
The Ministry of Commerce & Industry has stated that the next WPI data release for March 2025 will be on April 14, 2025.
