India’s WPI Inflation Eased to 1.31% in August 2024

The Wholesale Price Index (WPI) inflation in India eased to 1.31% in August 2024 from 2.04% in July 2024. The decline was driven by lower prices in minerals, crude petroleum, and food articles, despite increases in electricity and manufactured goods prices. The WPI for September 2024 will be released on October 14.

India's annual Wholesale Price Index (WPI) inflation rate eased to a provisional figure of 1.31% in August 2024, down from 2.04% in July, according to the Ministry of Commerce and Industry. The decline, attributed to lower prices in minerals, crude petroleum, and natural gas, marks a significant decrease from July's figures.

The WPI for all commodities in August stood at 154.5, slightly down from 155.2 in July. Primary articles, which make up 22.62% of the index, registered an inflation rate of 2.42%, down from 3.08% the previous month. This decrease was largely due to cheaper minerals and crude petroleum prices.

The Fuel & Power category, representing 13.15% of the WPI, saw its index rise to 148.1, although it experienced a deflation rate of -0.67% in August compared to an inflation rate of 1.72% in July. Manufactured products, comprising 64.23% of the index, saw a minor drop from 141.7 in July to 141.6 in August, with an inflation rate of 1.22%.

The WPI Food Index, which tracks prices of food articles and manufactured food products, declined from 195.4 in July to 193.2 in August, contributing to a lower annual food inflation rate of 3.26% compared to 3.55% in the previous month. This drop was driven by lower vegetable and fruit prices.

On a month-over-month basis, the overall WPI declined by 0.45% in August from July. Primary articles fell by 1.37%, led by reductions in mineral and crude petroleum prices, though non-food articles showed modest price increases. The Fuel & Power group saw a 0.14% rise in its index due to higher electricity prices. The Manufactured Products group experienced a marginal 0.07% decline, with mixed trends across various sectors.

Industries such as food products, machinery, and motor vehicles witnessed price hikes, while basic metals, chemicals, and textiles saw declines. The finalized WPI for June 2024 stood at 154.0, with an annual inflation rate of 3.43%, providing clarity on inflation trends. The WPI for September 2024 is slated for release on October 14.

(With inputs from agencies.)