Wholesale inflation inched up marginally in August on the back of stubborn prices of fuel, power and light and manufactured products, highlighting the lurking price pressures. Economists said the RBI will maintain its status quo on interest rates in its October review.
Inflation, as measured by the wholesale price index, rose an annual 11.4% in August, slightly higher than the 11.2% in the previous month. It was 0.4% in August last year.
The WPI data comes close against retail inflation numbers, which showed it slowed to a 4-month low at 5.3% in August, lower than the previous month’s 5.6%. WPI inflation has remained in double digits for five consecutive months.
The DPIIT attributed the high rate of inflation in August primarily to rise in prices of non-food articles, mineral oils, crude petroleum and natural gas, manufactured products like basic metals, food products, textiles, chemicals and chemical products, etc, as compared to the corresponding month of previous year.