February 2025 wholesale inflation accelerates to 2.38%

India's wholesale inflation rises to 2.38% in February, driven by food prices, easing inflation pressures prompt expectations for rate cuts.

India's wholesale inflation in February rose to 2.38% year-on-year, from 2.31% in January, government data released on Monday (March 17, 2025) showed. The increase is attributed to higher prices across several categories, including food products, food articles, textiles, non-food articles, and other manufactured goods.

Inflation pressures in India have been easing in recent months as favourable weather has helped vegetable output and improved supplies, raising expectations for more interest rate cuts in the coming months.

India's retail inflation fell below the central bank's 4% target in February mainly due to a decline in vegetable prices, government data showed last week.

Wholesale food prices rose 5.94% in February, after rising 7.47% in January. Vegetable prices fell 5.80%, compared to an 8.35% rise in the prior month. However, prices of potatoes and onions, along with fruits, rose between 21% and 48%.

Cereal prices rose 6.77% in February, against a 7.33% rise a month earlier.

Catching a break: On the January inflation dip and households 

Prices of manufactured products, which account for about 64% of the wholesale price index, increased 2.86% after rising 2.51% rise in January.