The rate of wholesale inflation dropped to 0.20%, the lowest level in the previous four months, although food prices went up.

In February, wholesale inflation in India dropped to 0.20%. In January, it was 0.27%. Also, the rate of inflation has not been this low in four months. In November, there was 0.26% inflation. While food prices have gone up, inflation has decreased.

Comparatively, wholesale inflation was 3.85% in February 2023, or one year ago. In contrast, inflation was negative from April 2023 to October 2023. April and October saw -0.92% and -0.52% inflation, respectively.

In February, the rate of food inflation declined.

Inflation on food has gone up from 3.79% to 4.09% since January.
Daily necessities now have an inflation rate of 4.49%, up from 3.84%.
Fuel and power wholesale inflation dropped from -0.51% to -1.59%.
Manufacturing product wholesale inflation dropped from -1.13% to -1.27%.
The retail inflation rate also decreased.

The retail inflation data were provided by the government earlier on March 12. In February 2024, retail inflation in India dropped slightly to 5.09%. Inflation has not been this low in the past four months. Inflation earlier in January was 5.10 percent.

WPI's effects on the average person: A prolonged rise in wholesale inflation has a detrimental effect on the majority of the productive sectors. When wholesale prices stay high for an extended period, producers transfer the cost to customers. WPI is exclusively under government control through taxation.

For instance, the government lowered the fuel excise rate when crude oil prices spiked sharply. But there is a limit to how far the government may lower tax cuts. Rubber, plastic, chemicals, and other factory-related commodities are given additional weight in WPI.