What was the annual rate of inflation based on the Wholesale Price Index (WPI) for February 2025?

  1. 2.21%
  2. 2.38%
  3. 2.57%
  4. 5.94%

Answer (Detailed Solution Below)

Option 2 : 2.38%

Detailed Solution

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The correct answer is 2.38%.

In News

  • The annual rate of inflation based on the Wholesale Price Index (WPI) was recorded at 2.38% for February 2025.

Key Points

  • In February 2025, WPI inflation stood at 2.38%, showing a slight increase from January 2025’s inflation rate of 2.31%.
  • The increase in WPI inflation was primarily driven by a rise in the prices of manufactured food products, food articles, non-food articles, and textiles.
  • The WPI Food Index, which includes food articles and manufactured food products, decreased to 189.0 in February 2025 from 191.4 in January 2025.
  • The final WPI inflation for December 2024 was 2.57%, indicating a gradual decrease over the months.

Additional Information

  • Wholesale Price Index (WPI)
    • WPI measures changes in the prices of goods at the wholesale level before they reach consumers.
    • The base year for the WPI calculation is 2011-12.
    • It is released monthly by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Key WPI Components for February 2025
    • Primary Articles: 2.81% inflation.
    • Fuel & Power: -0.71% deflation.
    • Manufactured Products: 2.86% inflation.
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