WPI Inflation Rises By 13.11 Per Cent In February 2022 As Russia Ukraine War Pushes Up Oil Prices

WPI Inflation: The high inflation rates are due to rising oil prices, metal prices and the prices of chemical products.

New Delhi: According to data released by the government, the Wholesale Price Index (WPI) in India rose 13.11 per cent in February 2022. Before this, the inflation figures had crossed the 13 per cent mark in December 2021 at 13.56 per cent. However, the WPI had softened marginally in January 2022 to 12.96 per cent.

According to the government release, the high inflation rates are due to rising oil prices, metal prices and the prices of chemical products. The oil prices have almost doubled in the last one month owing to the Russia Ukraine war.

“The high rate of inflation in February 2022 is primarily due to rise in prices of mineral oils, basic metals, chemicals and chemical products, crude petroleum & natural gas, food articles and non-food articles etc. as compared to the corresponding month of the previous year,” the government release said.

Even though the food inflation figures softened from 10.33 per cent to 8.19 per cent, the prices of wheat rose by 11.03 per cent. Russia is the largest exporter of wheat to the world, whereas, Ukraine is the fourth-largest supplier of wheat. With the Black Sea region under crisis, where most of the wheat trade takes place, the prices have surged.

Also, the prices of potatoes, eggs, meat and fish rose by over 8 per cent. But the major surge was due to a big rise in crude oil prices. Crude Oil jumped 46.14 per cent in February and Petroleum rose by over 55 per cent.

The inflation in the fuel segment saw a jump of 31.5 per cent. In January, this was 32.27 per cent. In this, the prices of petrol rose the most by over 58 per cent. Inflation in crude petroleum spiked to 55.17 per cent during February, against 39.41 per cent in the previous month, on rising prices of crude oil globally.

The Reserve Bank last month kept its key repo rate — at which it lends short-term money to banks — unchanged for the 10th time in a row at 4 per cent, to support growth as well as manage inflationary pressures.

(With agency inputs)