Synopsis: India’s wholesale price inflation (WPI) rose to an 11-month high of 2.13% in February 2026, driven by higher food and non-food prices. Economists warn that rising crude oil prices due to geopolitical tensions could push inflation higher in the coming months.
Wholesale Inflation Rises to 11-Month High in February 2026
India’s wholesale price inflation (WPI) increased to 2.13% in February 2026, marking an 11-month high, according to government data. This is the fourth consecutive month of rising wholesale inflation.
WPI inflation stood at 1.81% in January 2026 and 2.45% in February 2025, indicating a steady upward trend in price pressures across sectors.
Food and Non-Food Prices Drive Inflation
The rise in inflation was primarily driven by higher prices of food and non-food articles.
- Food Inflation: Increased to 2.19% (January: 1.55%)
- Vegetables: Moderated to 4.73% (January: 6.78%)
- Other Items: Pulses, potato, eggs, meat, and fish saw price increases
The Ministry of Commerce and Industry stated that the rise in inflation was mainly due to increased prices in manufacturing, basic metals, textiles, and other sectors.
Fuel and Power Deflation Narrows
The fuel and power category continued to show deflation, but the gap narrowed:
- Fuel Inflation: -3.78% (January: -4.01%)
- Global Crude Oil: Averaged USD 68 per barrel in February (January: USD 63)
Experts believe that rising global oil prices are beginning to reflect in wholesale inflation.
Crude Oil Prices May Push Inflation Higher
Economists warn that rising crude oil prices, influenced by geopolitical tensions in the Middle East, could further increase WPI inflation.
- Crude oil prices crossed USD 100 per barrel in March 2026
- Indian crude basket reached USD 101.25 per barrel, a 44-month high
Research firms suggest that wholesale inflation is more sensitive to global commodity prices compared to retail inflation.
Experts Expect Further Rise in Inflation
Analysts expect wholesale inflation to rise further in the coming months:
- India Ratings: WPI may remain elevated due to oil price pressures
- Barclays: Oil price impact likely to reflect strongly in March data
- Expected WPI (March 2026): Around 3.7%
Experts note that while retail fuel prices may remain stable, wholesale inflation will continue to reflect rising input costs.
Manufacturing and Non-Food Inflation Increase
Other key inflation indicators also showed an upward trend:
- Manufactured Products: 2.92% (January: 2.86%)
- Non-Food Articles: 8.80% (January: 7.58%)
This indicates growing cost pressures across industries, especially due to rising input prices.
Industry Calls for Policy Support
Industry experts emphasized the need for policy measures to manage inflation risks.
PHDCCI President Rajeev Juneja highlighted the importance of improving supply chain efficiency, reducing logistics costs, and ensuring adequate availability of raw materials to control inflationary pressures.
📌 Key Takeaway
India’s wholesale inflation rose to 2.13% in February 2026 due to rising food and commodity prices. With crude oil crossing USD 100 per barrel, experts expect inflation to increase further, making cost management and policy support crucial for economic stability.