WPI Inflation Drops to 1.31% in August, Lowest in 4 Months, as Prices for Food and Goods Decline

India's wholesale price index (WPI) inflation cooled to 1.31% in August 2024, down from 2.04% in July, according to provisional figures released by the Ministry of Commerce & Industry. This drop was mainly attributed to declining prices in manufactured goods and food items. In contrast, WPI inflation had surged to 3.36% in June and was at 2.61% in May.

The Ministry noted that the inflation uptick in August was primarily fueled by rising costs of food articles, processed foods, textiles, and machinery. Month-on-month, WPI saw a decrease of 0.45% from July to August, while the WPI Food Index also edged down from 3.55% in July to 3.26% in August.

Inflation for food articles eased to 3.11% in August from 3.45% in the previous month, and primary articles inflation fell to 2.42% from 3.08%. Fuel and power inflation turned negative, registering -0.67% in August, down from 1.72% in July, while inflation for manufactured goods stood at 1.22%.

Vegetable prices continued to decline, with inflation recorded at -10.01% in August, compared to -8.93% in July. Meanwhile, pulses inflation remained elevated at 18.57%, and wheat inflation rose slightly to 7.28% from 7.00%. Potato and onion prices soared, with inflation rates hitting 77.96% and 65.75%, respectively, while cereals inflation settled at 8.44%. Inflation for eggs, meat, and fish dipped to -0.69%.

Non-food articles saw WPI deflation at -2.08%, while inflation for minerals rose to 8.76%. Crude petroleum and natural gas posted an inflation rate of 1.77%, though crude petroleum alone experienced deflation at -0.98%.