New Delhi, March 12 -- India's Wholesale Price Index (WPI) inflation is expected to decline to 2 per cent in February 2025 from 2.3 per cent in January, primarily due to a drop in oil prices and a seasonal decline in food prices, according to a report by Union Bank of India.

The report highlighted that the moderation in WPI inflation is largely driven by a fall in vegetable prices, which is a key component of food inflation.

It said "Wholesale Price Index (WPI) is expected to moderate to 2.0 per cent (y/y) in Feb'25, low from 2.3 per cent in previous month, due to cooling in oil prices and seasonal drop in food prices".

Within food, vegetable prices are estimated to have dropped by 12 per cent month-on-month. However, edible oil prices...