Wholesale price-based inflation rate for the month of August rose to (-)0.52 per cent in August as compared to (-)1.36 per cent in July, according to the data released by the Office of the Economic Advisor on Thursday. The wholesale prices remained in the deflationary zone for the fifth month in a row in August, while the WPI inflation rose to a five-month high of (-)0.52 per cent. “The negative rate of inflation in August, 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products as compared to the corresponding month of previous year,” said the Ministry of Commerce & Industry release.
The food index inflation was at 5.62 per cent in August against 7.75 per cent in July. Meanwhile, fuel & power inflation for the month of August was at (-)6.03 per cent as against (-)12. 79 per cent in July. Manufactured products inflation was at (-)2.37 per cent in comparison to (-)2.51 per cent contraction in July.
The WPI data comes two days after the statistics ministry released Consumer Price Index (CPI) data for August, which showed India’s retail inflation in the month of August slowed to 6.83 per cent, 61 basis points lower in comparison to the 15-month high of 7.44 per cent in July.
Among food items, inflation in cereals stood at 7.25 per cent vs 8.31 per cent in July, vegetables inflation came in at 48.39 per cent as against 62.12 per cent in July, milk was at 7.79 per cent, wheat at 5.81 per cent, and egg, meat and fish inflation was at (-)2.98 per cent.
In fuel & power category, LPG inflation was at (-)24.01 per cent as against (-)20.69 per cent a month earlier, and petrol inflation stood at (-)2.13 per cent.
In the manufactured segment, manufactured beverages inflation stood at 2.26 per cent vs 2.42 per cent in July, tobacco products at 5.30 per cent and manufactured textiles inflation was at (-)8.46 per cent.
Earlier in August, the Reserve Bank of India Governor Shaktikanta Das had said that the Monetary Policy Committee decided to keep the key policy repo rate unchanged at 6.5 percent, maintaining status quo for the third time in a row.