{"id":5369,"date":"2025-03-17T14:57:57","date_gmt":"2025-03-17T09:27:57","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5369"},"modified":"2025-03-17T14:57:57","modified_gmt":"2025-03-17T09:27:57","slug":"indias-wholesale-inflation-rises-to-two-month-high-of-2-38-in-february","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/indias-wholesale-inflation-rises-to-two-month-high-of-2-38-in-february\/","title":{"rendered":"India\u2019s Wholesale Inflation Rises to Two-Month High of 2.38% in February"},"content":{"rendered":"<h3 data-start=\"82\" data-end=\"160\">Retail Inflation Drops to a Seven-Month Low Amid Falling Food Prices<\/h3>\n<p data-start=\"162\" data-end=\"536\">India\u2019s wholesale inflation climbed to a two-month high of 2.38% in February, slightly up from 2.3% in January. The increase was driven by rising costs in the manufacturing sector, which offset the decline in food prices. Meanwhile, retail inflation fell to a seven-month low of 3.6%, with food inflation reaching its lowest level in 21 months.<\/p>\n<p data-start=\"538\" data-end=\"859\">The divergence between wholesale price index (WPI) inflation and consumer price index (CPI) inflation reflects the weightage difference in the indices. While manufacturing products dominate WPI (accounting for nearly two-thirds of the index), food items hold a higher weightage of nearly 50% in CPI.<\/p>\n<h3 data-start=\"861\" data-end=\"931\">Core Inflation Hits Seven-Month High Amid Rising Input Costs<\/h3>\n<p data-start=\"933\" data-end=\"1199\">Despite the moderation in consumer inflation, core inflation (which excludes food and fuel) rose at its fastest pace in seven months. A key factor behind this was the increase in input costs for manufacturers, who passed on the burden to consumers.<\/p>\n<ul data-start=\"1201\" data-end=\"1532\">\n<li data-start=\"1201\" data-end=\"1401\">The Purchasing Managers\u2019 Index (PMI) released on March 3 indicated that producers faced higher raw material costs, which were transferred to end consumers due to strong demand.<\/li>\n<li data-start=\"1402\" data-end=\"1532\">This signals persistent pricing pressures in the manufacturing sector, despite the decline in food and fuel inflation.<\/li>\n<\/ul>\n<h3 data-start=\"1534\" data-end=\"1604\">Oil Prices Below $80 Per Barrel to Support Inflation Outlook<\/h3>\n<p data-start=\"1606\" data-end=\"1904\">A positive factor for inflation control is the fall in crude oil prices, which has stayed below $80 per barrel. Given India&#8217;s dependence on oil imports, lower crude prices are expected to keep fuel-related inflation in check and prevent further spikes in overall price levels.<\/p>\n<h3 data-start=\"1906\" data-end=\"1973\">RBI\u2019s Monetary Policy: Another Rate Cut Expected in April<\/h3>\n<p data-start=\"1975\" data-end=\"2171\">The continued fall in retail inflation strengthens the case for another rate cut by the Reserve Bank of India\u2019s (RBI) Monetary Policy Committee (MPC) in its April policy meeting.<\/p>\n<ul data-start=\"2173\" data-end=\"2614\">\n<li data-start=\"2173\" data-end=\"2308\">In February, the MPC reduced the repo rate by 25 basis points (bps) to 6.25%, marking the first rate cut in five years.<\/li>\n<li data-start=\"2309\" data-end=\"2461\">With inflation projected to remain below RBI\u2019s target of 4%, the policy rate is expected to fall to 6% in April with another 25 bps cut.<\/li>\n<li data-start=\"2462\" data-end=\"2614\">However, the rate-cut cycle is expected to be limited, and analysts predict that the RBI will not push rates below 5.75% in the near future.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Retail Inflation Drops to a Seven-Month Low Amid Falling Food Prices India\u2019s wholesale inflation climbed to a two-month high of 2.38% in February, slightly up from 2.3% in January. The increase was driven by rising costs in the manufacturing sector, which offset the decline in food prices. Meanwhile, retail inflation fell to a seven-month low [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362,615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5369","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news","8":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5369"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5369\/revisions"}],"predecessor-version":[{"id":5371,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5369\/revisions\/5371"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5370"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5369"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}