India’s WPI Inflation Climbs to 2.13%; Fuel Price Pressure Looms

India’s wholesale price index (WPI) rose for the fourth consecutive month to 2.13% in February, government data released on Monday showed. The rise in wholesale inflation comes amid an increase in food prices and non-food articles, though vegetable prices eased month-on-month. Wholesale inflation stood at 1.81% in January and 2.45% a year ago.

“Positive rate of inflation in February 2026 is primarily due to an increase in prices of other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles, etc.,” the commerce and industry ministry said in a statement.

According to the data, inflation in food articles stood at 2.19% as against 1.55% a month prior. Vegetable prices eased to 4.73% compared to 6.78% in January. Pulses, potato, and egg, meat and fish saw an uptick in inflation. WPI inflation for manufactured products rose to 2.92% from 2.86% a month ago.

Non-food articles inflation surged to 8.80% in February from 7.58% a month prior. The fuel and power category witnessed negative inflation at -3.78% this month compared to 4.01% in January.

“The latest numbers indicate that the rise in wholesale inflation has been primarily driven by higher prices in segments such as manufactured products, basic metals, textiles, non-food articles, and food articles due to an increase in commodity prices,” said Rajeev Juneja, President, PHD Chamber of Commerce and Industry.

Though the moderation in fuel-related inflation is encouraging, the outlook remains volatile owing to geopolitical risks likely arising from the West Asia conflict, Ranjeet Mehta, chief executive officer and secretary general at PHDCCI, added.

The industry body added that given the current geopolitical conditions, with no signs of easing in tensions in the West Asia conflict, continued policy focus on improving supply-chain efficiencies, lowering logistics costs, supporting domestic manufacturing, and ensuring adequate availability of critical inputs for industry remains critical. For crisis management, prompt measures would help contain cost-push pressures, Mehta added.

Retail inflation, based on the consumer price index (CPI), rose to 3.2% in February from 2.75% a month ago, data released last week showed. Inflation currently remains below the Reserve Bank of India’s target of 4%, with a tolerance band of +/- 2%.

The CPI is the preferred gauge of inflation for the RBI’s Monetary Policy Committee. The central bank’s rate-setting panel is next scheduled to meet from April 6–8.