Pulse of Inflation: WPI Exceeds Expectations in February

Wholesale price inflation in India rose to 2.13% in February, marking a fourth consecutive monthly increase. This uptick was primarily fueled by rising costs of food and non-food articles, despite a decrease in vegetable prices. Retail inflation also saw a rise, influencing policy decisions by the Reserve Bank of India.

In February, India's Wholesale Price Index (WPI)-based inflation escalated to 2.13%, marking the fourth straight month of rising inflation. According to government data revealed on Monday, this climb was largely driven by increased prices in food and non-food articles, although vegetable prices saw some relief on a monthly basis.

The industry ministry explained that the positive inflation rate in February 2026 resulted mainly from escalated prices in sectors like manufacturing, basic metals, and textiles. Food articles witnessed inflation of 2.19%, compared to 1.55% in January, with vegetables showing a slowdown in inflation rate from 6.78% to 4.73%.

Despite deflation in the fuel and power sector, retail inflation rose to 3.2% in February. This prompted the Reserve Bank of India to lower policy interest rates by 1.25 percentage points this fiscal year, as it monitors retail inflation to guide its interest rate decisions.