India’s wholesale prices inflation eased to a seven-month low in February on the back of softer rise in food prices.
Inflation measured by the Wholesale Price Index stood at 2.48 percent last month, compared with 2.84 percent in January, according to a statement by the Ministry of Commerce and Industry. That's marginally lower than the 2.50 percent median estimate of economists surveyed by Bloomberg.
Price of food articles fell 2 percent following a 9 percent drop in prices of fruits and vegetables. Prices of tea and ‘masur dal’ also fell 4 percent each, according to the statement.
This follows a decline in consumer price inflation at 4.4 percent, slowing for the second straight month in February. India's industrial output also remained strong.
However, that may not be enough for the Reserve Bank of India’s Monetary Policy Committee (MPC) to change its outlook in the policy review next month, as it expects inflation to return in the first quarter of the next financial year. For a while now, the MPC has maintained its neutral stance and kept rates on hold citing risk of heightened inflation.
Key Highlights
- Prices of primary articles fell 1.3 percent.
- Prices of food articles fell 2 percent.
- Prices of fuel and power rose 1.2 percent.
- Prices of manufactured products rose 0.4 percent.
(This copy has been published in an arrangement with BloombergQuint.)
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