NEW DELHI — Government data released on Monday shows that India’s wholesale price inflation accelerated for the fourth month in a row, reaching 2.13% in February 2026. This upward trend was primarily fueled by rising costs in food and non-food articles, as well as manufactured goods, despite a slight softening in vegetable prices compared to the previous month. The Wholesale Price Index (WPI) stood at 1.81% in January, indicating a steady climb from the beginning of the year.
The Ministry of Commerce and Industry attributed the positive inflation rate to increased prices across several sectors, including basic metals, textiles, and various manufactured products. Notably, inflation in the “non-food articles” category saw a significant spike, jumping to 8.80% in February from 7.58% in January. Manufactured products also saw a marginal increase, inching up to 2.92%.
Within the food basket, the inflation rate rose to 2.19%, up from 1.55% in the preceding month. While vegetable inflation provided some relief by easing to 4.73% from 6.78%, other staples such as pulses, potatoes, eggs, and meat witnessed an uptick in prices. Conversely, the fuel and power segment continued its deflationary trend, though the contraction narrowed slightly to 3.78% compared to 4.01% in January.
This rise in wholesale costs mirrors the trend in retail inflation, which climbed to 3.2% in February. Despite the uptick, the Reserve Bank of India (RBI) has already reduced policy interest rates by 1.25 percentage points during the current fiscal year, as overall price levels have remained relatively manageable. Since the RBI primarily monitors retail inflation to determine benchmark interest rates, analysts will be closely watching for how these combined inflationary pressures influence the central bank’s next policy move.
