New Delhi: The wholesale price-based inflation rose to 11.39 percent in August, according to the latest data released by the government on Tuesday. The Wholesale Price Index (WPI) inflation was 0.41 percent in August 2020, the Ministry of Commerce and Industry stated in a press release.
What’s the reason behind the surge in WPI inflation?
After easing for two-month, WPI inflation surged in August and remained in the double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 11.16 percent.
The high rate of inflation is primarily impacted by the prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products, etc as compared to the corresponding month of the previous year, the release stated.
While inflation in food articles eased for the fourth straight month, recording (-) 1.29 percent in August, from zero percent in July, even as onion and pulses prices remain high.
Onion inflation remained high at 62.78 percent while inflation in pulses was 9.41 percent. In vegetables, it was (-) 13.30 percent in August. Inflation in crude petroleum and natural gas was 40.03 percent in August.
In manufactured products, inflation stood at 11.39 percent in August, against 11.20 percent in July.
The Reserve Bank of India (RBI), which mainly considers retail inflation, in its monetary policy in August kept interest rates unchanged at record lows. It estimated CPI or retail inflation at 5.7 percent during 2021-22, up from its earlier projection of 5.1 percent.