February WPI inflation surges to 2.93% on rise in food, fuel prices

Economists are not sure whether it is an effect of rise in the minimum support price or drop in rabi sowing acreage

Like its retail price counterpart, the wholesale price index- (WPI-) based inflation rate rose to 2.93 per cent in February, from 2.76 per cent in the previous month, on surge in prices of food, among other items. 

Data released earlier this week showed that the consumer price index- (CPI-) based inflation rate moved up to a four-month high of 2.57 per cent, from 1.97 per cent in January. 

“Inflation in the economy has started moving up from the trough reached last month both at the retail and wholesale levels,” said Madan Sabnavis, chief economist at CARE Ratings. 

However, food items continued to witness