WPI Touches 24-Month High in August

India's wholesale inflation picked up pace and touched a 24-month high in August, led by costlier manufactured goods, suggesting the return of some pricing power to industry struggling under weak demand.
Inflation, as measured by the Wholesale Price Index, was 3.74% in August compared with 3.55% in July.
Prices of manufactured products, with a 64.97% weight in the WPI, increased 2.42% compared with a rise of 1.82% in July. The government revised wholesale inflation for June to 2.12% from 1.62% earlier.
Consumer inflation slowed sharply to 5.05% in August from 6.07% the month before.
The divergent trend of the two indices stems from food inflation, which has a 14.38% weight in WPI and over 45% in CPI. Wholesale inflation in food articles eased to 8.23% in August from 11.82% in July, not enough to offset the rise in manufactured product prices.
The data bodes well for the manufacturing sector, which has been struggling to show growth.

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