Retail inflation climbs to 4.8 pc in August, wholesale inflation 9.92 pc
The WPI has been on an upward trajectory since the beginning of this fiscal year as the West Asia war and the resultant blockade of the Strait of Hormuz
Retail inflation increased to 4.82 per cent in August, largely driven by higher food prices, according to government data released on Monday (September 14). The Consumer Price Index (CPI)-based inflation was 4.45 per cent in July.
Food inflation in August increased to 5.95 per cent compared to 5.52 in the preceding month, according to CPI data released by the National Statistics Office (NSO).
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The Reserve Bank of India (RBI) has projected the CPI inflation for 2026-27 at 5 per cent, with Q2 at 4.7 per cent, Q3 at 5.9 per cent, and Q4 at 5.5 per cent, citing deficient and uneven South-West monsoon amidst El Nino conditions.
The central bank recently kept key short-term policy rates unchanged amid inflation worries. The RBI’s official mandate is to keep inflation within the acceptable range of 2 per cent to 6 per cent.
Wholesale inflation rises to 9.92 per cent
Meanwhile, the wholesale price-based inflation rose to 9.92 per cent in August from 9.78 per cent in July, mainly due to rising prices of food, fuel, power and manufactured items.
Wholesale Price Index (WPI) inflation in the food index rose to 7.05 per cent in August, from 6.65 per cent in July. In manufactured items, WPI inflation was at a series high of 8.37 per cent, higher than 8.29 per cent in July. In the fuel and power basket, WPI-based inflation was 22.93 per cent.
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“Across groups, mineral oils (containing petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in August 2026,” the Commerce and Industry Ministry said while releasing the WPI data.
The WPI has been on an upward trajectory since the beginning of this fiscal year as the West Asia war and the resultant blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, pushed up global crude and fertiliser costs with a spillover effect on food prices.
(With agency inputs)