Wholesale inflation in negative for fifth month at -0.52 pc in August
Although lower than 14.25 per cent in July, inflation in food articles remained in double digit at 10.60 per cent in August
Wholesale price-based inflation remained in the negative for the fifth straight month in August at (-)0.52 per cent but there was an uptick in the prices of food articles and fuel.
The wholesale price index (WPI) based inflation rate has been in the negative since April and was (-)1.36 per cent in July. In August last year, it was 12.48 per cent.
Although lower than 14.25 per cent in July, inflation in food articles remained in double digit at 10.60 per cent in August.
"The negative rate of inflation in August 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical and chemical products, textiles and food products as compared to the corresponding month of previous year,” the Commerce and Industry Ministry said on Thursday.
Fuel and power basket inflation was at (-)6.03 per cent in August, against (-) 12.79 per cent in July.
Interest rate
In manufactured products, inflation rate was (-)2.37 per cent, as against (-)2.51 per cent in July.
In August, the Reserve Bank of India (RBI) in August kept key interest rate unchanged at 6.5 per cent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.
The RBI takes into account retail or consumer price index-based inflation for formulating monetary policy.
Retail inflation data for August came in at 6.83 per cent in August, lower than 7.44 per cent in July.
(With agency inputs)