WPI inflation rises to 11.39% in August on costlier manufactured goods; food prices soften

In July 2021, WPI inflation stood at 16%.

The wholesale price-based inflation rose marginally to 11.39 in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened.

Snapping the -month easing trend, WPI inflation rose in August and remained in double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 16%.

In August 2020, WPI inflation was at 0.41%.

"The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.

Inflation in food articles eased for the fourth straight month, recording (-) 1.29 in August, from zero per cent in July, even as onion and pulses prices spiked. Inflation in onions was high at 62.78 %, while that in pulses was 9.41%. In vegetables it was (-) 13.30% in August.

Inflation in crude petroleum and natural gas was 40.03 in August.

In manufactured products, inflation stood at 11.39 in August, against 11.20% in July.

The RBI, which mainly takes into account retail inflation, in its monetary policy last month kept interest rates unchanged at record lows. It projected CPI or retail inflation at 5.7 during 2021-22, up from its earlier projection of 5.1%.

Data released on Monday showed that retail inflation softened to a four-month low of 5.3 in August, from 5.59% in the previous month, led by subdued prices of food articles.

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