Wholesale inflation rises to 2.13% in February on higher manufacturing costs

India’s wholesale inflation edged up to 2.13 per cent in February 2026 , marking a continued upward trend, according to data released by the Ministry of Commerce & Industry on Monday. The inflation rate, based on the Wholesale Price Index (WPI), stood at 1.81 per cent in January and 0.96 per cent in December 2025.

Officials said the rise was mainly driven by higher prices of manufactured goods, basic metals, textiles, food items, and non-food articles , indicating firming cost pressures at the producer level.

The Wholesale Price Index (WPI) measures the average change in prices of goods at the wholesale or producer level, that is, before they reach retail markets and consumers. It tracks price movements in bulk transactions across primary articles, fuel and power, and manufactured products. WPI is compiled monthly and serves as a key indicator of inflation in production and supply chains.

Inflation in Primary Articles , which include agricultural produce and raw materials, rose to 3.27 per cent , led by food and non-food items. However, month-on-month prices in this category declined slightly due to lower food and mineral prices.

The Fuel and Power segment remained in deflation at –3.78 per cent , reflecting lower energy prices compared to last year, though there was a modest monthly increase due to higher mineral oil prices. Meanwhile, Manufactured Products , which carry the largest weight in the index, recorded inflation of 2.92 per cent . Prices rose across several industries, including food processing, textiles, chemicals, and electrical equipment, signalling higher input costs for producers.

The WPI Food Index showed inflation of 1.85 per cent , even as the index declined on a monthly basis, suggesting some easing in food prices compared with January. Rising wholesale inflation typically indicates increasing costs for businesses, which may eventually be passed on to consumers in the form of higher retail prices. Sustained increases in WPI can squeeze corporate margins, influence investment decisions, and shape monetary policy expectations.

However, the continued deflation in fuel prices has helped contain overall inflation, offering some relief to industries reliant on energy inputs. Moderate wholesale inflation is generally seen as a sign of stable demand conditions , but a sharp rise could signal building inflationary pressures in the broader economy.

Economists note that while the central bank primarily monitors retail inflation, trends in wholesale prices provide an early signal of future price movements and supply-side pressures. The February data suggests a gradual firming of producer-level inflation, driven largely by manufacturing and raw material costs. The next WPI release for March 2026 is scheduled for April 14.