August WPI inflation up at 0.16% after being in negative zone for 4 months

Wholesale price-based inflation jumped to 0.16 per cent in August as compared to -0.58 per cent in July, 2020. The figures were released by the Department for Promotion of Industry and Internal Trade on Monday. The figures returned to positive territory after being negative for four straight months. 

Meanwhile, the annual rate of inflation based on WPI Food Index decreased from 4.32 per cent  in July to 4.07 per cent in August and the WPI based inflation stood at -1.81 per cent. 

The Wholesale Price Index (WPI) are released on the 14th of every month with a time lag of two weeks of the reference month.

The index for primary articles with a weightage of 22.62 per cent increased by 1.81 per cent to 146.3 in August from 143.7 in July. Prices of minerals increased by 10.21 per cent, crude petroleum and natural gas by 4.72 per cent, non-food articles by 3.06 per cent and food articles by 0.93 per cent.

The index for fuel and power with a weightage of 13.15 per cent increased by 0.77 per cent to 91.4 in August from 90.7 in July. Prices of mineral oils increased by 1.3 per cent while prices of coal and electricity remain unchanged.

The index manufactured products with a weightage of 64.23 per cent increased by 0.59 per cent to 119.3 from 118.6. Out of the 22 NIC two-digit groups for manufactured products, 11 groups that witnessed increase in prices are manufacture of food products are beverages, leather and related products, wood and of products of wood and cork, printing and reproduction of recorded media, pharmaceuticals, medicinal chemical and botanical products, basic metals, electrical equipment, machinery and equipment, and other transport equipment.

The Wholesale Price Index remained in the deflationary territory for fourth straight month till July. Data released by the Commerce Ministry last month showed that WPI inflation came in -0.58 per cent year-on-year, compared with -1.81 per cent in June and a 4.5-year low of -3.37 per cent in May.