NEW DELHI: 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 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum and natural gas, basic metals, chemicals and 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. 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.
Prices of non-food articles (1.98 per cent) and food articles (1.57 per cent) increased while prices of minerals (-1.90 per cent) and crude petroleum and natural gas (-7.34 per cent) declined in August as compared to July.
The index for the fuel and power group declined by 4.83 per cent to 157.6 (provisional) from 165.6 (provisional) whereas prices of electricity (2.85 per cent) increased in August compared to July. Further, prices of mineral oils (-7.79 per cent) declined in August.
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. (ANI)