PTI
New Delhi, September 14
The wholesale price-based inflation eased to 11-month low of 12.41% in August, on softening in prices of manufactured and fuel products, even as food items remained expensive.
Although the Wholesale Price Index-based inflation declined for three consecutive months, it remained in double digit for 17th months beginning April last year.
In double digits for 17th month in row
- Inflation in food articles rose to 12.37% on account of costlier cereals, fruits and vegetables
- The rate of price rise in vegetables was 22.29% while in case of potato it was 43.56%
- In the fuel and power basket, inflation was 33.67% in August, as against 43.75% in July
The inflation was 13.93% in July and 11.64% in August last year. It had touched a record high of 15.88% in May this year. The inflation was lower than August print in September last year when it was 11.8%.
Inflation in food articles in August rose to 12.37%, as against 10.77% in July, on account of costlier cereals, fruits and vegetables. The rate of price rise in vegetables was 22.29% during the month under review, while in case of potato it was 43.56%.
Inflation in cereals was 1.77%, while in wheat and fruits it was 17.35% and 31.75%, respectively. In the fuel and power basket, inflation was 33.67% in August, as against 43.75% in July. In manufactured products and oil seeds, it was 7.51% and -13.48%, respectively.
Retail inflation has remained above the RBI’s upper tolerance threshold of 6% for the eighth month in a row and was at 7% in August.
To tame stubbornly high inflation, the RBI has hiked the key interest rate three times this year to 5.40%.
According to the central bank’s projections, retail inflation is likely to average 6.7% in 2022-23.
Domestic rating agency Icra said WPI inflation is likely to ease to 11-12% in September 2022 and print in single digits thereafter.
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