India's wholesale inflation eases to 12.41% in August
New Delhi, September 14: Wholesale inflation in India fell further in August, to 12.41 percent from 13.93 percent the previous month, but remained in the double digits, according to official data released on Wednesday.
"Inflation in August, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year," the statement issued by the Ministry of Commerce and Industry said.
Notably, Wholesale Price Index (WPI)-based inflation has now been in the double digits for 17 consecutive months.
The index of primary articles climbed by 0.62 percent in August 2022, to 178.6 (provisional) from 177.5 (provisional) in July 2022.
Prices for non-food items (1.98%) and food items (1.57%) increased in August 2022 compared to July 2022. Mineral prices (-1.90%) and Crude Petroleum and Natural Gas prices (-7.34%) fell in August 2022 compared to July 2022.
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The index for the fuel and power sector fell 4.83 percent to 157.6 (provisional) in August 2022, from 165.6 (provisional) in July 2022. Electricity prices went up by 2.85% in August 2022 compared to July 2022.
Furthermore, Mineral Oil prices fell (-7.79%) in August 2022 compared to July 2022.
Meanwhile, retail inflation in India increased to 7% in August from 6.71 percent the previous month, according to government data released on Monday.
For the eighth consecutive month, retail inflation surpassed the Reserve Bank of India's tolerance band. With headline inflation above 6% for the eighth month in a row, the RBI is on the verge of not meeting its inflation mandate.
The RBI is mandated to keep inflation between 2 and 6%. If average inflation continues beyond the tolerance band for three consecutive quarters, the RBI is regarded to have failed in its mandate.
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-PTC News
