Inflation in fuel and power declined 4% from a 3.64% fall in July and that in manufactured products was flat from a 0.34% growth in the trailing month.
Wholesale inflation remained at 1.08% in August, the same level as the previous month, government data showed on Monday. In July, wholesale inflation as measured by the Wholesale Price Index (WPI), was at a 25-month low of 1.08%. It was 4.62% in August last year.
Inflation in fuel and power declined 4% from a 3.64% fall in July and that in manufactured products was flat from a 0.34% growth in the trailing month.
“The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 4.54% in July, 2019 to 5.75% in August, 2019,” the commerce and industry ministry said in an official release.
“The weakness in the core WPI inflation in August was broad-based, with 15 of the sub-sectors recording a sequential easing in inflation and as many as nine of the categories recording a YoY disinflation.,” said AditiNayar, principally economist, ICRA.
The government kept unchanged the WPI for June at 2.02%. Data released last week showed India’s retail inflation climbing up to a 10-month high of 3.21% in August but stayed below the central bank’s 4% medium-term target, strengthening expectations of another rate cut next month.
