August WPI inflation remains unchanged at 25-month low
Last week, the Consumer Price Index (CPI) data released by the government showed an uptick in prices, especially led by the vegetables prices. On Monday, the Wholesale price index (WPI)-based inflation showed a different picture. Even as prices of food items rose, WPI was unchanged at 25-month low of 1.08 per cent in August as compared to 1.08 per cent in July this year and 4.62 per cent in August 2018.
The data showed that inflation in food articles jumped to 7.67 per cent in August from 6.15 per cent in July this year mainly on account of rise in prices of vegetables and protein-rich items. Vegetable inflation too rose to 13.07 per cent in the month under review as against 10.67 per cent in July 2019.
Inflation in protein-rich items, like egg, meat and fish, soared to 6.60 per cent last month from 3.16 per cent in July. Inflation in mineral oils group rose by 0.1 per cent to 91.5 from 91.4 for the previous month due to higher price of bitumen (9 per cent), furnace oil (4 per cent) and ATF and kerosene (3 per cent each). However, the price of LPG (11 per cent) and petroleum coke (2 per cent) declined.
The rate of inflation based on WPI Food Index consisting of food articles and food products from increased from 4.54 per cent in July, 2019 to 5.75 per cent in August, 2019.
Inflation in manufacture of food products group rose by 1.1 per cent due to higher price of molasses (6 per cent), manufacture of health supplements (5 per cent), rice bran oil and spices (including mixed spices) (4 per cent each), maida and rapeseed oil (3 per cent each), and butter, sooji (rawa), sugar, sunflower oil, groundnut oil and salt (2 per cent each).
On the other hand, fuel and power basket continued to witness deflation at 4 per cent in August as against 3.64 per cent in July.
Weakness in the core inflation 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 year-on-year disinflation.