India’s Wholesale Inflation Eases To 11-Month Low In August
Inflation, as measured by the Wholesale Price Index, stood at 12.4% in August 2022 compared to 13.9% in July 2022.
India’s wholesale inflation fell to the lowest since September last year, led by a broad-based decline in prices of most commodities.
Inflation—as measured by the Wholesale Price Index—stood at 12.4% in August compared with 13.9% in July 2022, according to data released by the Ministry of Commerce and Industry on Wednesday. That’s the third straight month of decline in WPI inflation.
The gauge fell 0.5% over the previous month compared with a 1% decline in July.
The Consumer Price Index inflation, however, rose to 7% in August from 6.71% in July.
The moderation in WPI was primarily driven by sequential declines in prices of imported products, Rahul Bajoria, chief economist at Barclays, said. Indeed, prices of fuels and edible oil contracted sequentially, which offset price rises seen in the food segment.
Core WPI dropped to 7.9% year-on-year in August, from 8.4% in July, marking the fourth successive month of fading inflation, he said. While the gap between WPI and CPI is providing is closing, providing some relief to producers, it remains wide enough to keep the MPC on its path of front-loaded rate hikes, he said.
WPI Inflation Internals (Year-On-Year)
Inflation in manufactured products—the largest component of the index—stood at 7.5% compared with 8.2% in July.
Primary articles inflation stood at 14.9% against 15.04% in the previous month.
Inflation in food articles was at 12.4% versus 10.78% previous month.
Vegetables inflation stood at 22.3% compared with 18.3% in July.
Cereals inflation rose to 11.8% from 9.8% a month ago.
Inflation in non-food articles was at 8.4% against 12.8% in the previous month.
Fuel and power inflation stood at 33.7% against 43.7% in July.