Official data released on Monday showed wholesale price inflation rose to 2.13 per cent in February, the highest level in 11 months, as cost pressures remained elevated despite some moderation in vegetable inflation amid firming food and non-food prices.The WPI based inflation rate has now increased for the fourth consecutive month. It was 1.81 percent in January and 2.45 percent in February last year.The inflation rate of food items increased to 2.19 percent in February, which was 1.55 percent a month ago. Although inflation of vegetables eased to 4.73 per cent from 6.78 per cent, prices of pulses, potatoes and eggs, meat and fish recorded higher inflation during the period.“The positive rate of inflation in February 2026 is mainly due to increase in prices of other manufacturing, basic metals, non-food items, food items and textiles, etc.,” the Industry Ministry said in a statement.Deflation in the fuel and power category eased to 3.78 per cent in February from 4.01 per cent in January. Global crude oil prices averaged US$68 per barrel during the month, compared to US$63 per barrel in January.Economists said wholesale inflation could accelerate further if crude oil prices remain high and spill over into sectors like fertilizers and aluminium, noting that wholesale inflation is more closely linked to international price trends than the retail inflation basket.Barclays said in a research note that the impact of higher crude oil prices due to the Middle East conflict will be more visible on wholesale inflation.“With a sharp rise in crude oil prices to cross USD 100/bbl by March 16, the respective WPI will likely reflect the same in the March print,” the note quoted PTI as saying.India Ratings & Research also cautioned that rising crude oil prices following the US-Iran war could push up wholesale inflation from March until supply-side pressures ease. The average price of Indian crude basket for March 2026 (as of March 12) has touched a 44-month high of US$101.25 per barrel.Ind-Ra Chief Economist Devendra Pant said wholesale inflation may remain high amid geopolitical tensions and favorable base effect.“Retail prices of petroleum products may remain flat for some time, negating any sharp rise in retail inflation. However, the rise in crude oil prices will lead to a rise in wholesale inflation. Ind-Ra expects wholesale inflation to rise to 3.7 per cent in March,” he said.According to WPI data, inflation in manufactured products rose marginally to 2.92 per cent in February from 2.86 per cent in January, while inflation in non-food articles rose to 8.80 per cent from 7.58 per cent.PHDCCI President Rajeev Juneja said continued policy focus on supply-chain efficiency, logistics cost reduction and domestic manufacturing support will be important to control cost-induced pressures amid global uncertainty.Separate data released earlier showed that retail inflation rose to 3.2 percent in February from 2.75 percent in January. The Reserve Bank of India, which mainly keeps an eye on retail inflation while setting policy rates, has cut benchmark interest rates by 1.25 percentage points in the current financial year as price pressures remained controlled.