New Delhi : Inflation based on the WPI fell to an 11-month low of 12.41 per cent in August as prices of manufactured goods softened despite a rise in prices of food grains, especially the protein staple of the common man’s daily diet.
This is the third consecutive month that the rate has declined. The rate was 13.93 percent last month, while it was 11.64 percent a year ago in August 2021.
Considering the 7 per cent rise in retail inflation in August, wholesale inflation is likely to decline. However, wholesale inflation has remained at double-digit levels for the 17th consecutive month since April in previous years.
Wholesale inflation was at a record high of 15.88 per cent in May this year and was at a decade-high since 2012. In comparison, the latest data shows that the rate continued to decline for the third consecutive month in June, July and August.
Foodgrains, which form the largest share in the Wholesale Price Index, grew marginally at 12.37 per cent as compared to 10.77 per cent in July. After that the price of vegetables has increased by 22.29 percent. Which was 18.25 percent every July.
However, inflation in prices of manufactured goods and oilseeds was recorded at minus 7.51 per cent and minus 13.48 per cent, respectively, which helped keep the overall index under control. This was followed by fuel and power inflation at 33.67 per cent in August, lower than the level of 43.75 per cent seen in July.
While the Reserve Bank takes into account retail inflation while formulating monetary policy, it is also expected to take into account the moderation in wholesale inflation in its bi-monthly policy review meeting from September 28 to 30 this month.
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