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India's Wholesale Price Index (WPI) inflation rose to 2.13 per cent in February 2026, up from 1.81 per cent in January 2026, driven mainly by manufactured products, basic metals, textiles, non-food articles, and food articles. The Fuel & Power segment, however, remained in negative territory at -3.78 per cent, while Manufactured Products inflation stood at 2.92 per cent, according to a statement released by the Ministry of Commerce & Industry.
The latest numbers indicate that the rise in wholesale inflation has been primarily driven by higher prices in segments such as manufactured products, basic metals, textiles, non-food articles, and food articles due to an increase in commodity prices, said Rajeev Juneja, President, PHDCCI. Within the Manufacturing Products, basic metals contributed to higher inflation relative to February 2025 due to a mix of global supply constraints, energy costs, freight disruption, and downstream industrial demand, he said. Increase in WPI inflation reflects a gradual firming up of price pressures in the production environment, particularly in manufacturing-linked categories. While the overall inflation remains manageable, continued monitoring of commodity prices, logistics costs, and input cost movements will be important to sustain industrial competitiveness and support domestic growth momentum, he added. Manufactured Products, which carry the highest weight in the WPI basket, recorded 2.92% inflation in February 2026, up from 2.86% in January 2026, indicating stubborn pricing pressures in the industrial sector, he said. Given the geopolitical risks, a continued policy focus on improving supply-chain efficiencies, lowering logistics costs, supporting domestic manufacturing, and ensuring adequate availability of critical inputs for industry is critical, as such measures would help contain cost-push pressures, he added. Stable WPI inflation is essential for maintaining consumer confidence, while protecting profit margins for producers, and ensuring smooth transmission across supply chains. The moderation in fuel-related inflation is encouraging, but the outlook looks volatile given the geopolitical risks said Dr Ranjeet Mehta, CEO & SG, PHDCCI. (ANI)
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