New Delhi: Wholesale inflation plunged for the second consecutive month to 1.31 percent in August due to cheaper vegetables, food articles and fuel, according to government data released on 17 sep.
Inflation based on the Wholesale Price Index stood at 2.04 percent in July. In August last year, it was (-) 0.46 percent.
“The positive rate of inflation in August 2024 is mainly due to the expansion in prices of food articles, processed food products, other manufacturing, textile manufacturing and manufacturing of machinery and equipment, etc,” the Ministry of Industry state in a statement.
According to the data, inflation in food items stood at 3.11 percent in August, as against 3.45 percent in July. Vegetable prices declined by 10.01 per cent in August, as against 8.93 percent in July, due to a fall in vegetable prices.
Inflation in potato and onion remained high in August, standing at 77.96 percent and 65.75 percent, respectively.
The fuel and power category witnessed deflation of 0.67 percent in August, while inflation was 1.72 per cent in July.
Data released last week showed that retail inflation stood at 3.65 percent in August, higher than July’s 3.60 percent, driven by rising vegetable prices.
The Reserve Bank of India (RBI), which mainly takes into account retail inflation while formulating monetary policy, kept the benchmark interest rate or repo rate unchanged at 6.5 percent for the ninth consecutive time in August.
