Headline inflation declined for the fourth straight month in a row, falling a steep 2.06 per cent during February, as the prices of manufactured products, fuel and power and food products softened. However, during the month onions, pulses and protein-rich items such as egg and milk became dearer, according to the data released by the ministry of commerce and industry.
According to the data, the headline inflation, as gauged by wholesale price index (WPI), during the previous month had fallen 0.39 per cent while it had declined 0.50 per cent in December. The WPI for February 2014 was 5.03 per cent. During the April-February period, the inflation declined 2.50 per cent compared to a build up rate of 5.53 per cent in the corresponding period of the last fiscal. WPI inflation for December was revised lower from 0.11 per cent to -0.5 per cent.
Even as the index for food articles group declined by 0.8 per cent, pulses grew costlier by 14.59 per cent as against 12.34 per cent in January while onion prices grew 26.58 per cent compared to a fall of 1.90 per cent in the previous month.
The index for fuel and power declined 14.72 per cent in February as against a decline of 10.69 per cent in the previous month. Similarly, the prices of manufactured products also moderated, growing just 0.33 per cent during the month as compared to inflation of 1.05 per cent in January and 1.44 per cent in December.
Sugar prices declined 1.98 per cent as against 1.25 per cent in January while that of edible oils declined 0.75 per cent as compared to 0.88 per cent in the previous month. Rate of price rise in products including man-made textiles, cotton textiles, wood and wood products, paper and paper products, chemicals and chemical products also moderated during the month.
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