WPI at its highest since November 2013

Driven by rise in food prices and increase in prices of manufactured products and petrol, the Indian wholesale prices rose by 6.55 per cent in February 2017, as compared to the same period previous year. The rise in the wholesale price index was preceded by an increase of 5.25 per cent in January, although the markets had expected a rise of 5.90 per cent.   

In the month of February 2017, the food prices rose by 2.69 per cent as compared to the same period last year. While wheat recorded the largest hike at 8.36 per cent, followed by fruits at 7.14 per cent, cereals at 6.09 per cent, rice at 4.40 per cent, milk at 3.93 per cent and egg, meat & fish at 3.79 per cent. However, prices of onions, potatoes, vegetables and pulses fell by 18.85 per cent, 8.84 per cent, 8.05 per cent and 0.79 per cent, respectively.  

The price of petrol rose by 16.72 per cent as compared to the same period previous year, whereas the price of diesel saw a hike of 33.14 per cent. The cost of manufactured products also rose 3.66 per cent.   

The WPI had reached its highest level in November 2013 with a 6.55 per cent rise. The index has been surging through the past eleven months. On a monthly basis, the index went up by 0.5 per cent, as compared to the one per cent rise in the previous month.