India’s wholesale inflation increased to 9.92% in August from 9.78% in July. Food inflation accelerated to 7.05%, while fuel and power inflation climbed sharply to 22.93%.
Highlights
- August WPI inflation stood at 9.92%, slightly above Bloomberg’s estimate of 9.90%.
- WPI inflation increased from 9.78% in July.
- New-series core WPI inflation stood at 8.1%.
- Food inflation rose to 7.05% from 6.65% in July.
New Delhi: India’s wholesale inflation edged higher in August, with the Wholesale Price Index (WPI)-based inflation rate coming in at 9.92%, according to the data shown in the release. The reading was marginally higher than Bloomberg’s estimate of 9.90% and above the 9.78% recorded in July.
The latest numbers indicate that rising food and energy prices continued to exert pressure on wholesale prices. Food inflation increased to 7.05% in August from 6.65% in July, reflecting stronger price pressures in the food basket.
Fuel and power remained a major contributor to inflation. Inflation in the category jumped to 22.93% from 20.05% in July, making it one of the fastest-rising components of the wholesale price index.
At the same time, some categories showed signs of moderation. Primary articles inflation eased to 7.8% from 8.5% in July. The new-series core WPI inflation was reported at 8.1%.
Inflation in manufactured products was reported at 8.37% in August, compared with 8.29% in July, indicating a marginal increase in price pressures in the manufacturing segment.
Overall, the August numbers point to continued inflationary pressure at the wholesale level, particularly from food and energy. Elevated fuel and power costs can also have a broader impact on businesses because energy and transportation costs feed into production and distribution expenses.
The trajectory of food and fuel prices will therefore remain important for the wholesale inflation outlook in the coming months.
