WPI-based inflation declined to 1.31% in August 2024

India’s wholesale price index (WPI)-based inflation dropped to 1.31% in August 2024, down from 2.04% in July, as per provisional data from the Ministry of Commerce & Industry. The decline was mainly driven by a reduction in the prices of manufactured goods and food items. Previously, WPI inflation had reached 3.36% in June and 2.61% in May.

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India’s wholesale price index (WPI)-based inflation eased to 1.31% in August 2024, down from 2.04% in July, according to provisional data from the Ministry of Commerce & Industry. This decline was largely due to lower prices of manufactured goods and food items. Earlier, WPI inflation had risen to 3.36% in June and stood at 2.61% in May.

The Ministry noted that the positive inflation rate in August 2024 was driven by rising prices in categories like food articles, processed food products, textiles, machinery, and other manufacturing. On a month-over-month basis, WPI decreased by 0.45% in August compared to July. The WPI Food Index, which tracks food-related inflation, also saw a decline, falling from 3.55% in July to 3.26% in August. Inflation for food articles dropped to 3.11% in August, down from 3.45% in July. Primary articles, which include essential goods, saw inflation decline to 2.42% in August from 3.08% in July. Additionally, fuel and power inflation turned negative, recording a rate of -0.67% in August compared to 1.72% in the previous month. Inflation for manufactured products stood at 1.22% in August.

Within the food articles category, vegetable prices continued to fall, with inflation recorded at -10.01% in August, compared to -8.93% in July. Pulses inflation remained high at 18.57%, while wheat inflation was slightly higher at 7.28% in August compared to 7.00% in July. Cereal inflation came in at 8.44%. However, the prices of eggs, meat, and fish saw a decline, with inflation at -0.69%. Meanwhile, inflation for potatoes and onions surged significantly, with rates of 77.96% and 65.75%, respectively.

Non-food articles posted a WPI inflation rate of -2.08%, while minerals experienced inflation at 8.76%. Crude petroleum and natural gas saw wholesale inflation of 1.77%, while crude petroleum alone had a rate of -0.98%. These figures reflect a mixed inflationary trend across different sectors, highlighting both price declines and increases in key categories.