Inflation moving up with WPI at 2.93% |
Inflation in the country based on wholesale prices inched up to 2.93 percent in February over the previous month on account of firming up of prices of food items, including vegetables and cereals, according to the government. The Wholesale Price Index -based inflation was at 2.74 for the same month last year and at 2.76 percent in January this year. As per data released earlier this week, the retail inflation based on Consumer Price Index rose to 2.57 percent in February, which is a four-month high, due to costlier food articles. The WPI data further revealed that wholesale-based price inflation in the food sector was 4.28 percent in February, against 2.34 percent recorded in the previous month. The inflation in the economy has started moving up from the trough it reached last month, both at retail and wholesale levels. The wholesale inflation in the fuel and power segment was also higher at 2.23 percent, compared with 1.85 percent recorded in January. The Reserve Bank, which mainly factors in retail inflation based Consumer Price Index, had cut the key lending rate by 0.25 percent in February. In April, the Reserve Bank of India`s Monetary Policy Committee will be meeting for the first bi-monthly monetary policy, for the further review of the next fiscal.
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