Negative Inflation: WPI inflation -ve for 5th month in row

NEW DELHI: Wholesale price inflation remained in the negative zone for the fifth month in a row in August, largely led by deflation in fuel, power and manufactured product segments but food inflation remained in double digits.
Data released by the commerce and industry ministry on Thursday showed inflation, as measured by the Wholesale Price Index (WPI), contracted 0.5%, narrower than the 1.4% drop in July. The negative rate of inflation in August, 2023 is primarily due to fall in prices of mineral oils, basic metals, chemicals, textiles and food products as compared to the corresponding month of previous year, according to the statement.
Food inflation was at 10.6% during the month. Vegetable prices rose an annual 48.4%, while inflation for onions was at 31.4%. Pulses inflation was at 10.5% during the month.
Fuel and power contracted 6% in August while manufactured products declined 2.4%. “With the support of high base fading, some uptick in WPI inflation could be seen in the second half,” said Rajani Sinha, chief economist at ratings agency CareEdge.

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