Highlight
- Wholesale price-based inflation dips to 12.41 per cent in August for the third consecutive month
- Inflation based on WPI was 13.93% in July and 11.64% in August last year
- August marks 17th consecutive month of wholesale price inflation
business News: Wholesale price-based inflation eased for the third consecutive month in August at 12.41 per cent, while manufactured goods prices moderated, while food articles saw a rise.
Inflation based on WPI was 13.93 per cent in July and 11.64 per cent in August last year.
August is the 17th consecutive month of double-digit wholesale price inflation (WPI).
The Wholesale Price Index touched a record high of 15.88 per cent in May this year.
Inflation in food articles rose to 12.37 per cent in August from 10.77 per cent in July.
The prices of vegetables increased by 22.29 per cent during the month under review as against 18.25 per cent in July.
In the fuel and power basket, inflation stood at 33.67 per cent in August, as against 43.75 per cent in July. It was 7.51 per cent and (-) 13.48 per cent in manufactured products and oilseeds respectively.
The Reserve Bank of India (RBI) primarily looks at retail inflation to formulate its monetary policy.
Retail inflation has remained above the Reserve Bank’s upper tolerance limit of 6 per cent for the eighth consecutive month and stood at 7 per cent in August. To control inflation, the RBI has increased the key interest rate three times to 5.40 percent this year.
Retail inflation is expected to average 6.7 per cent in 2022-23 as per the central bank’s projections.
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