The Producer Price Index, a wholesale inflation gauge that is being closely watched for tariff-related impacts, showed that price hikes slowed substantially in February.

India's wholesale inflation in February rose to 2.38% year-on-year, slightly above 2.31% in January as a slowing food price increase was offset by a narrower drop in fuel prices, government data released on Monday showed.

Core wholesale prices, which exclude volatile food and energy costs, declined by 0.1 per cent from January—marking the first monthly decrease since July. On a yearly basis, core prices rose 3.4 per cent, down from 3.8 per cent in January, indicating a gradual cooling of inflationary pressures.