Wholesale Inflation Drops to 1.31% in August Amid Declining Vegetable Prices

Government data revealed wholesale inflation fell to 1.31% in August, driven by cheaper vegetables, food, and fuel. The wholesale price index (WPI) based inflation was 2.04% in July. Key contributors include a fall in vegetable prices despite high inflation in potatoes and onions. Fuel and power category experienced deflation.

Government data released on Tuesday indicated that wholesale inflation declined for the second consecutive month to 1.31 percent in August, influenced primarily by lower prices of vegetables, food, and fuel.

Comparatively, the wholesale price index (WPI) based inflation stood at 2.04 percent in July. Last year, August observed a negative inflation rate of -0.46 percent.

The industry's ministry indicated that the positive rate of inflation in August 2024 was majorly due to increased prices in categories such as food articles, processed food products, and other manufacturing sectors.

(With inputs from agencies.)