Inflation rises to 6-month high of 6.1% in August
Zee Media Bureau/Rd. Alexander
New Delhi: Costlier vegetable prices especially onion pushed the Wholesale Price Index (WPI) inflation to 6.1 percent in August compared to 5.79 in July, the highest in six months.
The Indian rupee, hitting a record high of 68.85 on August 28 against the US dollar, also played a major role in the increase in prices of food and vegetables.
Inflation was mainly affected by the price of onion which hit a record high of Rs 80 per kg in the national capital during the month of August. Overall, food prices jumped by about 18 percent during the month, government data showed.
The August inflation rate of 6.1 percent is the highest level since February 2013, when it was 7.28 percent.
Inflation had recorded 8.1 percent during the corresponding month of the previous year.
As Raghuram Rajan takes his first call as the RBI chairman on the monetary policy later this week, inflation remains a major challenge for him on the economic front.