Wholesale Inflation in India hits 24-month low at 3.85% in February 2023

Wholesale Inflation in India hits 24-month low at 3.85% in February 2023

The Commerce Ministry of India has recently released data indicating a 24-month low in the Wholesale Price Index (WPI)-based inflation, which fell to 3.85% in February 2023. This data comes as a welcome relief after the WPI inflation was at 4.73% in January 2023.

This marks the lowest WPI inflation since January 2021 when it was 2.51%. The decline in wholesale inflation in February 2023 was attributed to the fall in prices of crude petroleum, natural gas, non-food articles, and food products.

Additionally, prices of minerals, computer, electronic and optical products, chemicals and chemical products, electrical equipment, and motor vehicles also came down in February.

An official statement stated that the decline in wholesale inflation was mainly due to the decrease in the prices of essential products. This news could potentially result in a positive impact on the Indian economy, especially in regards to the manufacturing and production sectors.

The government will be hoping that this trend continues, as it could potentially lead to an increase in consumer demand and an overall boost to the Indian economy.