Wholesale Inflation Climbs to 2.13% in February, Hits 11-Month High, as Manufacturing Prices Firm Up

India’s wholesale inflation accelerated for the third consecutive month in February, which signals rising price pressures across the economy. According to data released by the Ministry of Commerce and Industry, the Wholesale Price Index (WPI) rose to 2.13% year-on-year in February 2026, marking the highest level in nearly 11 months.

The latest reading is higher than 1.81% recorded in January and 0.96% in December, thus indicating a steady upward trend in wholesale prices as input costs rise across several sectors.

Manufactured Products Lead the Inflation Push

The biggest contributor to the rise in wholesale inflation remained manufactured products, which account for the largest share of the WPI basket. Inflation in manufactured products edged up to 2.92% in February from 2.86% in January, approaching a three-year high. Increases show rising input costs in industries such as basic metals, textiles, and other manufacturing categories, including jewellery.

The persistent rise in manufacturing costs suggests companies are gradually passing on higher production expenses into wholesale prices, which could eventually feed into consumer inflation.

Prices in primary articles, which include agricultural products and minerals, rose sharply during the month. Wholesale inflation in this category climbed to 3.27% in February, up from 2.21% in January. The increase was mostly driven by higher prices of non-food articles and minerals. This signals strengthening commodity demand and tightening supply conditions.

Fuel, Power Remain in Deflation

Despite rising global energy prices, the fuel and power category remained in the deflation zone. Inflation in this segment stood at -3.78% in February, compared with -4.01% in January. The continued negative reading is mainly due to a high base effect from last year’s elevated energy prices.

However, on a month-on-month basis, fuel prices increased 1.17%, suggesting that the category could turn positive in the coming months if global oil prices remain elevated. Currently, Brent crude oil is trading above $104 per barrel, adding pressure to energy markets.

Food Inflation Higher

The WPI food index, which tracks wholesale food prices, also moved higher during February. Food inflation rose to 1.85%, compared with 1.41% in January, thus reflecting firming prices in several agricultural commodities. 

The rise in wholesale inflation comes shortly after retail inflation also showed signs of acceleration. India’s Consumer Price Index (CPI) climbed to 3.21% last week, also marking an 11-month high. The narrowing gap between wholesale and retail inflation suggests that cost pressures in the production pipeline are increasingly being passed on to consumers.

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