Inflation based on the Wholesale Price Index (WPI), inflation was 2.84 per cent in January and 5.51 per cent in February 2017. "At present, we expect the average WPI inflation to rise to 3.9% in FY2019 from around 2.9% in FY2018", said Aditi Nayar, principal economist at credit rating agency ICRA. The index for apparel increased by 0.4 per cent to 139.0 in February, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry.
Wholesale food prices in February rose 0.07% year-on-year, compared with a 1.65% rise a month earlier. The WPI data showed prices of pulses contracted an annual 24.3%, while those of vegetables rose 15.4% during the month, slower than the 36.7% rise in the previous month.
Build up inflation rate in the financial year so far was 2.30 percent compared to a build up rate of 4.92 percent in the corresponding period of the previous year.
Wholesale inflation in onion slowed to 118.95 per cent, but rose marginally in the case of potato to 11.67 per cent. The index for fuel and power (weight 13.15 per cent), on the other hand, increased by 1.2 per cent to 98.1 from 96.9 for the previous month due to higher price of non-coking coal, ATF, kerosene, lube oils, furnace oil, HSD, petrol and petroleum coke.
Similarly, CARE Ratings also said while food prices will remain stable in the coming months, inflationary threats could arise from increase in global oil or commodity prices, unseasonal weather patterns and increase in Minimum Support Prices for some crops.