India's inflation based on WPI dips to 11-month low of 12.41 pc in August
NEW DELHI: Staying above the double-digit mark, India's inflation based on the Wholesale Price Index (WPI) slightly dipped to a 11-month low of 12.41 per cent in August, as against 13.93 per cent in the previous month, but food inflation saw an uptick during the month. It's yet another month of increase in wholesale prices in August 2022, remaining above the 10 per cent mark for 17 months in a row, the commerce ministry data showed on Wednesday.
As per the data, the price of food items for both primary and processed categories inched up in the month of August after showing signs of easing in the previous month. "The WPI Food Index, which has a nearly 25 per cent weight in the overall index, saw inflation rise to 9.93 per cent in August from 9.41 per cent in July," the data showed.
However, the ministry in its release said that the WPI for August, 2022 have been compiled at a weighted response rate of 80.8 per cent, while the final figure for June, 2022 is based on the weighted response rate of 92.6 per cent. "The provisional figures of WPI will undergo revision as per the final revision policy of WPI," it added.
The data further said that primary articles inflation cooled further to 14.93 per cent in August from 15.04 per cent in July and 18.63 per cent in June. "However, vegetable inflation shot up to 22.29 per cent in August from 18.25 per cent in July, while fruit spiked to 31.75 per cent during the month compared to 29.44 per cent in July. Fuel and power inflation continued with a downward trajectory, touching 33.67 per cent in August from 43.75 per cent in the previous month," it added.
With global prices for commodities and fuel starting to come down gradually, economists expect domestic prices are likely to cool further in the coming months following the action by the central bank and the government. "Keeping this in view, even the RBI-led monetary policy committee is expected to further hike policy rates in the upcoming policy review on 30 September," they said.