WPI inflation stays in negative for 5th month at 0.52% in August due to fall in food, chemical prices
- WPI inflation stays in negative for fifth month at (-) 0.52% in August, food prices skyrocket
Wholesale price inflation remained in the negative territory for the fifth straight month in August at -0.52%. In July, the WPI inflation was at -1.36%. The negative rate of inflation in August this year is due to fall in prices of mineral oils, basic metals, chemical products, textiles and food products as compared to the corresponding month of previous year, according to the data by the Ministry of Commerce & Industry.
Fuel and power basket inflation eased to (-) 6.03% in August from (-)12.79% in July.
In manufactured products, the inflation rate was (-)2.37% in August 2023 as against (-)2.51% in July.
Inflation in food articles remained in double digit at 10.60% in August but lower than 14.25% in July this year.
The month-over-month change in the WPI index for the month of August 2023 stood at 0.33% as compared to July 2023.
According to the Centre's data, the WPI index for fuel and power surged by 2.96% to 149.6 (provisional) in August 2023 from 145.3 (provisional) in July 2023. This is because the prices of mineral oils (4.02%) and electricity (1.79%) increased in August 2023 as compared to July 2023.
Besides, the index for manufactured products also increased by 0.14% to 139.8 (provisional) in August as against 139.6 (provisional) in July 2023.
The price increase is mainly contributed by food products; electrical equipment; computer, electronic & optical products; other manufacturing; printing and reproduction of recorded media; motor vehicles, trailers & semi-trailers etc, the government said.
DPIIT releases the index number of wholesale prices in India every month on the 14th of every month (or the next working day).
The RBI raised its inflation forecast for the current financial year ending March 2024 to 5.4% from 5.1% earlier, citing pressures from food prices. Last month, the RBI also kept key interest rate unchanged at 6.5% for the third straight MPC meeting but signalled tighter policy if food prices drive inflation higher.
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Business NewsEconomyWPI inflation stays in negative for 5th month at 0.52% in August due to fall in food, chemical prices
First Published:14 Sep 2023, 12:29 PM IST
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