New Delhi: According to the latest data released by the government on Tuesday, the wholesale price-based inflation rose to 11.39 per cent in August. Wholesale Price Index (WPI) inflation stood at 0.41 per cent in August 2020, the Ministry of Commerce and Industry said in a press release.
What is the reason behind the jump in WPI inflation?
After two months of moderation, WPI inflation rose in August and remained in double digits for the fifth consecutive month. WPI inflation stood at 11.16 per cent in July 2021.
The high rate of inflation is mainly influenced by the prices of non-food items, mineral oils; crude petroleum and natural gas; Manufactured products such as base metals; food products; Cloth; Chemicals and chemical products etc., as compared to the corresponding month of the previous year, the release said.
While inflation in food articles eased for the fourth consecutive month, it was recorded at (-) 1.29 per cent in August, from zero per cent in July, while prices of onions and pulses remain high.
Inflation in onion stood at 62.78 per cent while that of pulses stood at 9.41 per cent. In vegetables it was (-) 13.30 per cent in August. Inflation in crude petroleum and natural gas stood at 40.03 per cent in August.
Inflation in manufactured products stood at 11.39 per cent in August, as against 11.20 per cent in July.
The Reserve Bank of India (RBI), which primarily looks at retail inflation, kept interest rates unchanged at a record low in its monetary policy in August. It projected CPI or retail inflation at 5.7 per cent during 2021-22, higher than its earlier estimate of 5.1 per cent.
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