WPI inflation drops to four-month low of 4.53%

Inflation in the ‘fuel and power’ basket was 17.73 per cent in August as prices of domestic fuel increased, in line with high global crude oil rates and a depreciating rupee.

By: ENS Economic Bureau | New Delhi | Published: September 15, 2018 12:52:49 am
Why farm deflation is essentially a problem of liquidity Deflation in vegetables was 20.18 per cent in August, as against 14.07 per cent in the previous month. (Express Photo)

Wholesale Price Index (WPI)-based inflation in August eased to a four-month low of 4.53 per cent on softening of food prices.

The effect of rising petrol and diesel prices has been neutralised by deflation in food articles, which resulted a lower WPI inflation for August. The WPI-based inflation stood at 5.09 per cent in July and 3.24 per cent in August last year. As per government data released Friday, food articles registered deflation at 4.04 per cent in August 2018. Last month, deflation in this category was 2.16 per cent.

Deflation in vegetables was 20.18 per cent in August, as against 14.07 per cent in the previous month. Inflation in the ‘fuel and power’ basket was 17.73 per cent in August as prices of domestic fuel increased, in line with high global crude oil rates and a depreciating rupee. While inflation in LPG was 46.08 per cent, in diesel and petrol it was 19.90 per cent and 16.30 per cent, respectively, during August.

During August, among food articles, potato inflation continued to rule high at 71.89 per cent, while onion and fruits witnessed deflation of 26.80 per cent and 16.40 per cent, respectively. Deflation continued in pulses at 14.23 per cent in August. The 4.53 per cent inflation is the lowest in four months, and a lower inflation than this level was last seen in April at 3.62 per cent. According to the data, the WPI inflation for June was revised downwards to 5.68 per cent from the provisional estimate of 5.77 per cent. (With PTI)

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