BBN Bureau
MUMBAI/March 13-2022: The year on year (YoY) WPI inflation rose mildly to 13.1 per cent in February 2022 from 13 per cent in January 2022, despite a favourable base effect, led by manufactured products, crude petroleum and natural gas and primary non-food articles, an ICRA report said.
With a steep sequential correction in the prices of vegetables and eggs, primary food inflation eased to single digits in February 2022 (to 8.2 per cent from 10.3 per cent in Jan 2022).
Discomfortingly, ICRA says, the core WPI inflation reverted to a double-digit inflation in February 2022 (to 10 per cent in February 2022 from 9.7 per cent in January 2022), despite a favourable base, with a strong sequential uptick.
“Looking ahead, the global surge in commodity prices, including crude as well as edible oils poses the chief risk to the WPI inflation trajectory, we now expect the WPI inflation to print at a high 13-14 per cent in March 2022,” the ICRA note added.
