New Delhi: WPI Inflation in August: There is no relief from inflation. In August, the government has again suffered a setback on the wholesale inflation front. In August, the wholesale inflation rate (WPI) stood at 11.39 per cent. Whereas the estimate was 10.8 per cent. In the previous month of July, the wholesale inflation rate was 11.16 per cent.
Why did wholesale inflation rise?
According to government data, the increase in wholesale inflation has been registered due to the rise in fuel and electricity prices. Along with this, the rise in the prices of manufactured products is also responsible for this impact of inflation. On a quarter-on-quarter basis, the wholesale inflation of fuel and power has increased from 26.02 per cent to 26.09 per cent in August.
Food inflation down
In August, the wholesale inflation of manufactured products rose to 11.39 per cent from 11.2% in July. However, the inflation of food items has decreased during this period. In August, the wholesale inflation of food items has come down from 4.46 per cent in July to 3.43 per cent. Apart from this, the wholesale inflation rate of primary articles has increased from 5.72 per cent to 6.20 per cent in August on a month-on-month basis.
There was relief in retail inflation
Let us tell you that there has not been any relief in wholesale inflation, but people got relief on the retail inflation front. Retail inflation data was released in August. In which some softening was seen compared to the previous month. The biggest reason for this was the decrease in the prices of vegetables and grains. According to government data, the Consumer Price Index-based (CPI) retail inflation was 5.30 per cent in August 2021.
This is the second time that the CPI figure has come below the Reserve Bank’s maximum limit of 6 per cent. Earlier, the CPI was above 6 per cent for two consecutive months in May and June. In the last month of July 2021, it was 6.69 per cent. Reserve Bank Governor Shaktikanta Das had recently said that the inflation rate will improve gradually, he had expressed hope that soon retail inflation would come under the target of 6 per cent.