India Inflation (WPI, ann. var. %, eop)

Inflation eases slightly in February

Inflation declined slightly to 6.4% in February from January’s 6.5%. February’s result was slightly above market expectations.

The trend increased, with annual average inflation in February coming in at 6.8% as compared to January’s 6.7%.

Lastly, consumer prices increased 0.17% month-on-month in February, compared with the 0.46% mom rise recorded in January.

Looking ahead, our panelists expect inflation to continue declining this year on a tougher base effect, weakening economic activity and cooling commodity prices. Key factors to watch include this season’s wheat crop, monetary policy, currency fluctuations, the Russia-Ukraine grain deal and changes in export controls for key agricultural commodities.