Lowest ever: Feb WPI falls to -2.06% thanks to dipping global oil prices

Inflation, as measured by the wholesale price index (WPI), fell a steep -2.06 percent from -0.39 percent, marking the fourth straight month of deflation in prices. A CNBC-TV18 poll of economists forecast WPI to come in at -0.65 percent.

Data released by the government today showed year-on-year inflation fell to the lowest level since data has been tracked in the current 2005 series. WPI inflation for December was revised lower from 0.11 percent to -0.5 percent.

The contraction was led by a month-on-month decline in all three broad groups that make up the index. Primary articles (index weightage: 20.11 percent) down 1.9 percent, fuel & power (weightage: 14.91 percent) down 4.43 percent, and manufactured products (weight: 64.97 percent) down 0.26 percent. Primary articles comprise primarily of food articles, fuel & power group is made up from coal, oil and electricity while manufactured products comprise of food products, textiles, chemicals, basic metals among others.