India’s wholesale price inflation (WPI) moderated to an 11-month low in August on the back of easing prices of fuel and power, manufactured food and non-food items but remained in double digits for 17th month in a row.
The data released by India’s ministry of commerce and industry recently showed inflation, as measured by the Wholesale Price Index (WPI), rose an annual 12.4% in August, lower than the previous month’s 13.9%. Inflation during the month was largely driven by rise in prices of mineral oils, food articles, crude, petroleum products and natural gas, basic metals, chemicals and chemical products, electricity and food products.
Food inflation rose to 9.9% in August from a three month low of 9.4% in July. “The recent moderation in WPI inflation has largely been driven by a correction in global commodity prices following fears of a global slowdown and the reimposition of Covid restrictions in China,” said Aditi Nayar, chief economist at ratings agency ICRA.