Wholesale Price Index for Feb, some key insights

Hyderabad: India's Wholesale Price Index (WPI) for February 2024, with the base year of 2011-12, reflects a moderate spike. The annual rate of inflation based on the WPI stands at 0.20% (provisional) compared to February 2023. This positive inflation rate is primarily attributed to price increases in food articles, crude petroleum & natural gas, electricity, machinery & equipment, and motor vehicles, trailers & semi-trailers.

Here's a detailed analysis of the WPI and its components:

• The WPI for all commodities stands at 151.2 (provisional) for February 2024, with an inflation rate of 0.20%. This shows a slight increase from the previous month's index of 151.1 and an inflation rate of 0.27% in January 2024.
• Primary Articles (Weight: 22.62%): The index increased to 181.4 (provisional) in February 2024, with an inflation rate of 4.49%.
• Fuel & Power (Weight: 13.15%): The index increased to 155.1 (provisional) in February 2024, with an inflation rate of -1.59%.
• Manufactured Products (Weight: 64.23%): The index remained unchanged at 139.8 (provisional) in February 2024, with an inflation rate of -1.27%.

Month-over-Month Changes

• All Commodities: The month-over-month change in the WPI index for February 2024 was 0.07% compared to January 2024.
• Primary Articles: The index increased by 0.22% in February 2024, with notable price increases in minerals (2.80%), crude petroleum & natural gas (2.18%), and food articles (0.26%).
• Fuel & Power: The index increased by 0.19% in February 2024, driven by price increases in electricity (0.77%) and mineral oils (0.06%).
• Manufactured Products: The index remained constant at 139.8 (provisional) in February 2024, with varying price changes across different categories.
• WPI Food Index: The Food Index, comprising 'Food Articles' from Primary Articles and 'Food Product' from Manufactured Products, increased from 178.0 in January 2024 to 178.3 in February 2024.
• The rate of inflation based on the WPI Food Index increased from 3.79% in January 2024 to 4.09% in February 2024.

In December 2023, the final WPI for 'All Commodities' (Base: 2011-12=100) stood at 151.8, with an inflation rate of 0.86%.

• Response Rate and Revision: The WPI for February 2024 was compiled with a weighted response rate of 85.0%, while the final figure for December 2023 was based on a weighted response rate of 94.9%.

The provisional figures of WPI are subject to revision as per the final revision policy.

To sum up, inflation remains modest, with some sectors experiencing price increases (such as primary articles and food), while others show stability or slight declines.

The stability in the manufactured products sector could indicate steady demand or effective pricing strategies by manufacturers.

The increase in the food index and associated inflation rate highlights potential challenges for consumers, especially in the context of rising food prices.