The rate of wholesale inflation declined marginally to 0.2 per cent in February compared with 0.27 per cent in the preceding month despite a slight uptick in the food basket.

The Wholesale Price Index (WPI)-based inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent. The inflation in February 2023 was 3.85 per cent.

“The annual rate of inflation based on the all India WPI number is 0.20 per cent (provisional) for the month of February 2024 (over February 2023),” the commerce and industry ministry said in a statement.

Food inflation moved up marginally to 6.95 per cent in February from 6.85 per cent in January, data showed. Inflation in vegetables was 19.78 per cent, up from 19.71 in January. The WPI inflation in pulses was at 18.48 per cent in February compared with 16.06 per cent in January.

Sonal Badhan, economist, Bank of Baroda, said: “Within vegetables, onion inflation appears to be sticky, while that of tomatoes and potatoes is seen inching up. Only fruit inflation provided some relief.

“Fuel and power inflation fell at a faster pace, owing to a steep decline in the mineral oil index. The coal index registered some moderation, while electricity price index jumped up. Manufactured inflation also softened, led by dip in basic metals. International commodity prices also remain subdued. Going ahead, volatility in international crude oil prices will remain a concern, owing to tensions in West Asia.”

The data showed that inflation in the “fuel and power” segment contracted further by 1.59 per cent in February against a deflation of 0.51 per cent in January.

The prices of manufactured products also declined 1.27 per cent compared with 1.13 per cent in January.