NEW DELHI (Reuters) -India’s wholesale inflation in February rose to 2.38% year-on-year, from 2.31% in January on higher prices of some vegetables and fruits, government data released on Monday showed.
The wholesale inflation, a proxy for producer prices, was higher than the 2.36% projected by economists in a Reuters poll.
Inflation pressures in the South Asian country have been easing in recent months as favourable weather has helped vegetable output and improved supplies, raising expectations for more interest rate cuts in the coming months.
India’s retail inflation fell below the central bank’s 4% target in February mainly due to a decline in vegetable prices, government data showed last week.
Wholesale food prices rose 5.94% in February, after rising 7.47% in January. Vegetable prices fell 5.80%, compared to an 8.35% rise in the prior month. However, prices of potatoes and onions, along with fruits, rose between 21% and 48%.
Cereal prices rose 6.77% in February, against a 7.33% rise a month earlier.
Prices of manufactured products, which account for about 64% of the wholesale price index, increased 2.86% after rising 2.51% rise in January.
Meanwhile, fuel and power prices dropped 0.71% year-on-year, compared with a 2.78% drop in January.
(Reporting by Aftab Ahmed; Editing by Varun H K)
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