Wholesale Price based inflation spikes to 3-month-high at 0.53% in March
The annual rate of inflation based on the all India Wholesale Price Index (WPI) number has risen marginally to 0.53 per cent for March 2024, the government said on Monday.
India’s wholesale inflation declined further during the month of August to 12.41 per cent from 13.93 per cent the previous month but continues to remain in double digits, official data released on Wednesday showed.
“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,” a Ministry of Commerce and Industry statement said.
Notably, the Wholesale Price Index (WPI) based inflation has been in the double-digit for 17 months in a row now.
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The index of primary articles increased by 0.62 per cent to 178.6 (provisional) in August 2022 from 177.5 (provisional) for the month of July 2022.
Prices of Non-food Articles (1.98 per cent) and Food Articles (1.57 per cent) increased in August 2022 compared to July 2022. Prices of Minerals (-1.90 per cent) and Crude Petroleum and Natural Gas (-7.34 per cent) declined in August 2022 as compared to July 2022.
The index for the fuel and power group declined by 4.83 per cent to 157.6 (provisional) in August 2022 from 165.6 (provisional) for the month of July 2022. Prices of Electricity (2.85 per cent) increased in August 2022 compared to July 2022.
Further, prices of Mineral Oils (-7.79 per cent) declined in August 2022 as compared to July 2022.
Meanwhile, India’s retail inflation rose to 7 per cent in August from 6.71 per cent the previous month due to a sharp rise in food prices, as per the government data released on Monday.
Retail inflation exceeded the Reserve Bank of India’s tolerance band for the eighth consecutive month. With the headline inflation coming above 6 per cent for the eighth month in a row, the RBI is on a brink of failing to meet its inflation mandate.
The RBI is mandated to keep inflation in a range of 2-6 per cent. The RBI is deemed to have failed in its mandate if the average inflation remains outside the tolerance band for three consecutive quarters.
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