Wholesale inflation subsides to 4.53% in August, food inflation declines to -2.25%

Wholesale inflation for the month of August witnessed a four-month low of 4.53 per cent, with food inflation declining to -2.25 per cent in the same month.

Wholesale inflation, measured as Wholesale Price Index (WPI), dipped to 4.53 per cent in August from 5.09 per cent in July and 3.24 per cent in the corresponding month of the previous year.

Build up inflation rate in the financial year so far was 3.18 per cent, compared to a build up rate of 1.41 per cent in the corresponding period of the previous year, as per data published by the Ministry of Commerce and Industry.

The index for 'Food Articles' group rose by 0.1 per cent due to higher price of gram (6 per cent), moong, ragi and bajra (4 per cent each), urad, barley, wheat and tea (3 per cent each). However, the price of egg (6 per cent), poultry chicken (5 per cent), fish-inland (3 per cent), peas/chawali, betel leaves and arhar (2 per cent each) and beef and buffalo meat (1 per cent each) declined.

Meanwhile, index for 'Non-Food Articles' group rose by 1.2 per cent due to higher price of groundnut seed and guar seed (7 per cent each), castor seed (4 per cent), gingelly seed, raw rubber and floriculture (3 per cent each), and cotton seed, raw jute, sunflower, safflower (kardi seed) and raw cotton (1per cent each). However, the price of soyabean (2 per cent) and niger seed and hides (raw) (1 per cent each) declined.

The index for 'Crude Petroleum and Natural Gas' group rose by 0.5 per cent due to higher price of crude petroleum, while that of 'Mineral Oils' group rose by 0.8 per cent owing to a rise in the prices of LPG (5 per cent), petroleum coke (3 per cent), kerosene and ATF (2 per cent each) and naphtha and bitumen (1 per cent each).

In terms of the manufacturing sector, the index for 'Manufacture of Tobacco Products' group rose by 0.5 per cent due to higher price of other tobacco products (2 per cent). However, the price of cigarette declined by one per cent.

The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group rose by 0.7 per cent due to higher price of release valve (4 per cent), seat for motor vehicles and shock absorbers (2 per cent each) and passenger vehicles, body (for commercial motor vehicles), gear box and parts, radiators and coolers, engine, minibus/bus, chain and wheels/wheels and parts (1 per cent each).

However, the price of shafts of all kinds, brake pad/brake liner/brake block/brake rubber, others, cylinder liners and filter element declined by one per cent each.

-ANI