India wholesale price inflation (WPI) accelerated to an 11-month high of 2.13% in February 2026, up from 1.81% in January, according to government data released. The uptick was primarily driven by rising food and manufactured product prices, indicating increasing cost pressures across the supply chain.
Key Highlights
- India’s wholesale inflation rose to 2.13% in February, marking highest level in eleven months.
- Rise driven by food, manufacturing costs despite continued decline in fuel and power prices.
The February print slightly exceeded economists’ expectations of around 2%, signalling persistent price pressures despite moderating trends in some components. The rise in wholesale inflation follows an increase in retail inflation to 3.21% in February, driven by higher food and commodity prices, including precious metals.
Key drivers of inflation
- Food prices rose 1.85% year-on-year, up from 1.41% in January.
- Vegetable prices increased 4.73%, though at a slower pace compared to the previous month.
- Manufactured products inflation edged up to 2.92%, reflecting higher input costs for industries.
- Fuel and power prices continued to remain in deflation, falling 3.78%, providing partial relief.
Economists note that firming crude oil prices and global uncertainties could further push wholesale inflation higher in the coming months, potentially impacting input costs for businesses and overall pricing trends.
The rise in WPI indicate increasing cost pressures at the producer level, potential pass-through to retail inflation if trends persist, and a factor the Reserve Bank of India (RBI) may monitor closely for future policy decisions.
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Overall, while inflation remains relatively moderate, the latest data suggests early signs of upward pressure in the economy, particularly from food and manufacturing sectors.
