Wholesale inflation rises to 12-month high of 2.13%:Food daily essential items become expensive

Wholesale inflation (WPI) increased to 2.13% in February. This is a 12-month high level of inflation. In February 2025, it had reached 2.38%. Earlier in January 2026, wholesale inflation was at 1.81%. While in December, wholesale inflation was at 0.83%. The Commerce Ministry released wholesale inflation figures on March 16. Experts believe that if the US-Israel and Iran war continues for long, crude oil prices could reach $150 per barrel. This could make petrol-diesel more expensive, which will increase transportation costs and lead to price increases in essential items including fruits and vegetables. Daily necessities and food items become more expensive Three Components of Wholesale Inflation Primary articles, which have a weight of 22.62%. Fuel and power has a weight of 13.15% and manufactured products have the highest weight of 64.23%. Primary articles also have four parts. Retail inflation increased to 3.21% in February Retail inflation increased to 3.21% in February. Earlier in January, it was 2.74%. This increase in inflation has occurred at a time when there is ongoing war between Israel-America and Iran. Impact of Wholesale Price Index (WPI) on common man Prolonged rise in wholesale inflation adversely affects most productive sectors. If wholesale prices remain at high levels for too long, producers pass this burden onto consumers. The government can only control WPI through taxes. For example, when crude oil prices rose sharply, the government had reduced excise duty on fuel. However, the government can only reduce taxes within certain limits. WPI has more weightage on factory-related items like metals, chemicals, plastics, rubber. How is inflation measured? There are two types of inflation in India. One is retail and the other is wholesale inflation. The retail inflation rate is based on prices paid by ordinary consumers. This is also called the Consumer Price Index (CPI). Whereas, the Wholesale Price Index (WPI) refers to the prices that one business charges another business in the wholesale market. Different items are included to measure inflation. For example, in wholesale inflation, the share of manufactured products is 63.75%, primary articles like food is 22.62% and fuel and power is 13.15%. Meanwhile, in retail inflation, the share of food and products is 45.86%, housing is 10.07%, and there is also participation of other items including fuel.