Wholesale inflation decreased in the country
Now the effect of inflation seems to be easing in India. Now the inflation rate has come down as the Reserve Bank of India raised the repo rates and kept them for more than a year. A few days ago, the retail inflation figures were released, which remained below 4 percent in August. Now the government has also released the wholesale market figures. The inflation rate based on the wholesale price index (WPI inflation rate) declined for the second consecutive month in August.
Wholesale inflation has fallen for the second consecutive month due to falling prices of vegetables and food and lower fuel prices. In August, it was 1.31 percent. The Ministry of Trade and Industry released its latest figures on Tuesday.
Inflation is declining in the country.
Inflation based on the Wholesale Price Index (WPI) also declined in July. In July it was 2.04 percent. While in August last year it was (-) 0.46 percent. Similarly, the inflation rate based on the consumer price index (retail inflation rate CPI) was 3.65 percent in August. While in July 2024 it was 3.60 percent. Compared to August 2023, the retail inflation level declined by about 50 percent as then the inflation was 6.83 percent.
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What was the wholesale inflation in which segment?
In a statement issued by the Ministry of Industry, it is said that in August 2024, there has been a decrease in the cost of manufacturing food, food processing products, other manufactured goods, textile manufacturing, machinery and tools, etc. According to the data, the inflation of food products was 3.11 percent in August, while in July it was 3.45 percent.
Prices of vegetables decreased by 10.01 percent in August, while in July they were 8.93 percent. Prices of potatoes and onions also remained high in August. Their price inflation remained at a high level of 77.96 percent and 65.75 percent respectively. While the inflation rate in the fuel and electricity category was 0.67 percent in August, compared to 1.72 percent in July.
The Reserve Bank of India (RBI) primarily takes into account retail inflation while formulating its monetary policy. In the August monetary policy review, the RBI kept the policy rate unchanged at 6.5 per cent for the ninth consecutive time.
