The Indian government released the wholesale price index (WPI) data for the month of August on Thursday, September 14. The wholesale inflation came at -0.52 percent. It is in the negative for fifth-straight month.
NSE
In July, the wholesale inflation come at -1.36 percent and in June it came at -4.12 percent.
The Wholesale Price Index or WPI measures change in prices of goods sold and traded in bulk by the wholesale businesses with other companies. Unlike the CPI which tracks prices of goods and services purchased by consumers, WPI tracks factory gate prices before retail prices.
The government attributed the negative rate of inflation to fall in prices of mineral oils, basic metals, chemical and chemical products, textiles and food products as compared to the corresponding month of previous year.
| June 2023 | July 2023 | August 2023 | |
| Primary Articles | -2.98% | 7.57% | 6.34% |
| Fuel & Power | -12.51% | -12.79% | -6.03% |
| Manufactured Products | -2.78% | -2.51% | -2.37% |
| Food Index | -1.30% | 7.75% | 5.62% |
Year-on-year percent change
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The core inflation remained unchanged in August, came at -2.2 percent.
In an interaction with Rupa Rege Nitsure, Chief Economist, L&T Financial Services said, "I was expecting it to get back into the positive growth zone and change the trend of the last four months because you see, we have seen such sharp spikes in our food and non-food prices within primary articles group, and also global commodity prices, especially energy and metal prices also posted a sharp increase in the month of August. So I was expecting WPI to get into the positive growth zone."
He further said that its likely we will see again it returning to the positive growth zone next month onwards. "I feel food inflation is going to persist for a longer time and to add to that worry, now we are seeing global crude oil prices also have started increasing at a faster pace because of OPEC production cuts etc. "I think Reserve Bank of India will definitely postpone the rate reduction cycle," Nitsure added.
Also Read: Delhi's Outcome Budget: More Mohalla Clinics and classrooms? Govt sets targets for departments, agencies for 2023-24
First Published:Sept 14, 2023 12:21 PM IST
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