Wholesale Inflation Remains In Negative For Fifth Month At -0.52% In August

Image Courtesy: ANI

New Delhi: Wholesale price-based inflation remained in the negative territory for the fifth straight month in August at (-)0.52 percent, but prices of food articles and fuel showed an uptick. The wholesale price index (WPI) based inflation rate has been in the negative since April and was (-)1.36 percent in July.

In August last year, it was 12.48 percent. Inflation in food articles remained in double digits at 10.60 percent in August, lower than 14.25 percent in July. "The negative rate of inflation in August 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles, and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Thursday. ()

Fuel and power basket inflation was at (-)6.03 percent in August, against (-) 12.79 percent in July. In manufactured products, the inflation rate was (-)2.37 percent, as against (-)2.51 percent in July.

The RBI last month kept the key interest rate unchanged at 6.5 percent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.

The central bank takes into account retail or consumer price index-based inflation for formulating monetary policy. Retail inflation data for August came in at 6.83 percent in August, lower than 7.44 percent in July.