 "WPI, WPI Inflation")
Manufactured products, which have a weight of 64.2 per cent in the index, also saw a decline in inflation. Photo: Shutterstock
India’s wholesale price index (WPI)-based inflation cooled to a four-month low of 1.31 per cent in August, down from 2.04 per cent in July and mainly due to a reduction in the prices of manufactured products and food items.
Food price inflation stood at 3.11 per cent, compared to 3.45 per cent in July, according to data released by the Commerce Ministry on Tuesday. Prices of other major sub-indices, such as manufactured products, decelerated. Prices of fuel and power contracted too.
Within food articles, prices of cereals (8.44 per cent), paddy (9.12 per cent), and pulses (18.57 per cent) decelerated. There was a slight deceleration in the price of onion (65.75 per cent) but inflation remained in double digits. On the other hand, the prices of potatoes (77.96 per cent) and fruits (16.7 per cent) accelerated in August.
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Manufactured products, which have a weight of 64.2 per cent in the index, also saw a decline in inflation – to 1.22 per cent from 1.58 per cent in July. This was led by a deceleration in the prices of manufactured food products (3.61 per cent), beverages (1.9 per cent), textiles (1.79 per cent), wood products (3.17 per cent), and pharmaceuticals (1.97 per cent), among others.
Factory gate prices for fuel and power (-0.67 per cent) contracted as high-speed diesel (-3.03 per cent) and petrol (-4.23 per cent) further declined in August. However, the price of cooking gas (14.4 per cent) accelerated.
The data comes days after retail inflation rose marginally in August to 3.65 per cent from 3.6 per cent in July but remained below the Reserve Bank of India’s (RBI) medium-term target of 4 per cent for the second time in nearly five years. The RBI tracks retail inflation for its monetary policy, and the reduction in WPI may help keep retail inflation low, albeit with a time lag.
First Published: Sep 17 2024 | 12:32 PM IST
