In India, the wholesale inflation rate decreased to 1.31% in August, marking a reduction for the second month in a row, influenced by lower prices in vegetables and food items. This reduction follows a rate of 2.04% in July, according to government data. This continued decrease from the previous year's wholesale price index (WPI) inflation, which was at (-) 0.46% in August 2023, suggests a trend.
The Ministry of Industry noted that the inflation rate in August 2024 was primarily affected by an increase in prices across various sectors such as food articles, processed food products, textiles, machinery, and equipment manufacturing. Despite these increases, the overall inflation rate was moderated by declines in other areas.
A significant factor in the moderation of wholesale inflation was the decrease in food prices, especially vegetables, with the inflation rate for food items at 3.11% in August, down from 3.45% in July. Vegetable prices saw a notable deflation of 10.01% in August. However, prices for essential food staples such as potatoes and onions saw dramatic increases, with potatoes up by 77.96% and onions by 65.75%.
Source: News X