Indias WPI inflation eases to 12.41% in August from 13.93% in July

The wholesale price index (WPI) in India fell to 12.41% in August, down from 13.93% in July 2022. For the 17th month in a row, the figure has stayed in the double digits.

Also Read| Global markets react to higher than expected US inflation data

“Inflation in August 2022 is primarily contributed by rising in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year.” stated a press release.

In August, inflation in the food articles basket jumped to 12.37%, up from 10.77% the previous month. The manufactured goods category increased by 7.51%.

Also Read| US inflation rate eases slightly | A timeline: 1930-2022

Primary Articles, a major segment, increased at a rapid rate of 14.93%. In July, the figure was 2.69%. The WPI number for the fuel and power segment increased/came in at 33.67%, up from 43.75% in July.

The upper limit of the RBI‘s tolerance band (2–6%) was recently breached for the eighth consecutive month as retail inflation for the month of August soared to 7%.

Also Read| India’s retail inflation rises 7% in August due to high food prices

The Wholesale Price Index (WPI) tracks changes in the average prices of items supplied in bulk and transacted between businesses or organisations rather than goods purchased by consumers.

Aditi Nayar, Chief Economist at ICRA, had predicted that WPI-based inflation would fall to 12.5%. “We are looking at the WPI inflation coming down to 12.5 per cent this month and it should fall below into single digits in a couple of months. That is not really very comforting but I do think that we are going to start seeing lower prints even on the CPI,” she said.

WPI for September 2022 will be released on October 14, 2022.