In vegetables, deflation was 3.50% in December, compared to 20.23% in November. File
| Photo Credit: The Hindu

New Delhi:

Wholesale inflation fell for the second consecutive month to 1.31 per cent in August due to cheaper vegetables, food and fuel, government data released on Tuesday showed.

The wholesale price index (WPI) based inflation was 2.04 per cent in July. It was (-) 0.46 per cent in August last year.

“Positive rate of inflation in August 2024 is primarily due to increase in prices of food articles, processed food products, other manufacturing, manufacture of textiles and manufacture of machinery & equipment etc,” the industry ministry said in a statement.

As per the data, inflation in food items was 3.11 per cent in August against 3.45 per cent in July. This was led by declining prices of vegetables, which recorded a deflation of 10.01 per cent in August compared to 8.93 per cent in July.

Inflation in potatoes and onions continued to be high at 77.96 per cent and 65.75 per cent in August.

The fuel and power category witnessed deflation of 0.67 per cent in August against inflation of 1.72 per cent in July.

Data released last week showed retail inflation was at 3.65 per cent in August on higher prices of vegetables. This was higher than 3.60 per cent in July.

The Reserve Bank of India (RBI), which mainly takes into account retail inflation while framing monetary policy, kept the benchmark interest rate or repo rate unchanged for the ninth consecutive time in August at 6.5 per cent. 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

New Delhi:

Wholesale inflation remained in the negative territory for the sixth straight month in September at (-) 0.26 per cent on easing prices of food items, especially vegetables.

The wholesale price index (WPI)-based inflation rate has been in the negative since April and was (-)0.52 per cent in August. In September last year, it was 10.55 per cent.

Experts said the continued deflation in WPI in year-on-year terms was mostly due to faster decline in food prices.

Inflation in food articles eased to 3.35 per cent in September, after remaining in double digits in the previous two months. It was 10.60 per cent in August.

In vegetables, inflation was (-)15 per cent, as against 48.39 per cent in August. In potato, it was (-)25.24 per cent in September, as against (-)24.02 per cent in the previous month.

However, some hardening in inflation was seen in food items like pulses, onion, milk and fruits during September.

Inflation in pulses was 17.69 per cent, while in onion it was at a high of 55.05 per cent during the month.

Fuel and power basket inflation was at (-)3.35 per cent in September, against (-)6.03 per cent in August.

In manufactured products, inflation rate was (-)1.34 per cent, as against (-)2.37 per cent in August.

“Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Monday.

Barclays MD & Head of EM Asia Economics Rahul Bajoria said the easing momentum in core inflation and decline in vegetable prices are driving the moderation in retail inflation. But the sequential rise in the WPI for manufactured products bears watching, if producers pass on higher costs into retail prices.

“As of now, firm surveys indicate the pace of increase in selling prices is lower than that in input prices (as seen in PMIs for manufacturing and services, and RBI’s industrial outlook survey). We expect RBI to remain on a prolonged pause, as it monitors uncertainty on the commodity front, both in domestic non-perishable food prices and international energy prices,” Bajoria said.

Data released last week showed that the annual retail or consumer price inflation was at 5.02 per cent in September, a 3-month low level.

Earlier this month, RBI projected the CPI inflation to be at 5.4 per cent for 2023-24. The central bank kept key policy interest rate on hold in the fourth consecutive meeting for deciding monetary policy as it targets to keep inflation within the target band of 2-6 per cent.

India’s wholesale prices stayed in deflationary mode for the sixth month in a row this September, albeit only fractionally with inflation at -0.26% compared to -0.52% in August, according to government data released on October 16.
| Photo Credit: SUSHIL KUMAR VERMA

India’s wholesale prices stayed in deflationary mode for the sixth month in a row this September, albeit only fractionally with inflation at -0.26% compared to -0.52% in August, according to government data released on October 16.

Price rises in primary articles and food items have eased to 3.7% and 1.5%, respectively, even as the decline in fuel and power costs and manufactured products’ prices almost halved from August to -3.35% and -1.34%, respectively. 

The WPI-based inflation rate has been in the negative since April and was (-)0.52% in August. In September last year, it was 10.55%.

Inflation in food articles eased to 3.35% in September, after remaining in double digits in the previous two months. It was 10.60% in August.

“Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said on October 16.

Fuel and power basket inflation was at (-)3.35% in September, against (-)6.03% in August.

In manufactured products, inflation rate was (-)1.34%, as against (-)2.37% in August.

Data released last week showed that the annual retail or consumer price inflation was at 5.02% in September, a three-month low level.

(With inputs from PTI)

Inflation in food articles remained in double digit at 10.60% in August, lower than 14.25% in July. File
| Photo Credit: Mohammed Yousuf

India’s wholesale prices remained in deflationary mode for the fifth month in a row in August but the decline in prices eased to -0.52% from -1.36% in July, even as inflation in food and primary articles moderated to about 6% from over 7.5% in the previous month.

The dip in the deflation rate was largely driven by fuel and power prices, whose year-on-year decline more than halved from -12.8% in July to -6% in August.

Deflation in manufactured products dropped fractionally from -2.5% in the previous month to -2.4% in August.

On a month-on-month basis, the Wholesale Price Index (WPI) moved up for the second successive month, rising 0.33% in August compared to 2.01% in July. Sequentially, fuel and power costs actually rose 3% after several months of declines, while manufactured products prices rose for the first time in four months, albeit at a marginal pace of 0.14%.

The Commerce and Industry Ministry attributed the negative rate of inflation “primarily to the fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products”.

While the wholesale food index was up 5.6%, primary food articles inflation remained elevated at 10.6% in August after hitting a decade-high of 14.25% in July, with vegetable prices rising 48.4% compared to 62.1% in July.

Inflation in cereals eased to a three-month low of 7.25% in August, but paddy prices surged 9.2% and pulses by 10.5%, the highest pace in at least six months for both food items. Onion prices shot up 31.4% in August, compared to 7.1% in July. Milk inflation eased to a six-month low of 7.8% but was only marginally lower than the 8.15% recorded in July.

Economists expect wholesale inflation to rebound from the deflationary trend in coming months, which would also feed into pressures on inflation in consumer prices, which remained elevated at 6.83% in August. “Prices of crude oil, cereals and pulses are rising and industrial as well as consumer demand is holding up. This would keep CPI inflation in the range of 5.5%-6.5% over the next two quarters and not allow it to come down sharply,” said Suman Chowdhury, chief economist and head-research at Acuité Ratings & Research.

New Delhi:

Wholesale price-based inflation remained in the negative territory for the fifth straight month in August at (-)0.52 per cent, 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 per cent in July. In August last year it was 12.48 per cent.

Inflation in food articles remained in double digit at 10.60 per cent in August, lower than 14.25 per cent 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 previous year,” the commerce and industry ministry said on Thursday.

Fuel and power basket inflation was at (-)6.03 per cent in August, against (-) 12.79 per cent in July.

In manufactured products, inflation rate was (-)2.37 per cent, as against (-)2.51 per cent in July.

The RBI last month kept key interest rate unchanged at 6.5 per cent 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 per cent in August, lower than 7.44 per cent in July.