The wholesale price-based inflation rose marginally to 11.39 percent in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened, as per the information provided by Ministry of Commerce and Industry.

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Snapping the two-month easing trend, WPI inflation rose in August and remained in double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 11.16 percent while in August 2020, WPI inflation was at 0.41 percent.

 

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"The high rate of inflation in August 2021 is primarily due 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 the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.

Inflation in food articles eased for the fourth straight month, recording (-) 1.29 percent in August, from zero percent in July, even as onion and pulses prices spiked. Inflation in onions was high at 62.78 percent, while that in pulses was 9.41 percent. In vegetables it was (-) 13.30 per cent in August.

 

Inflation in crude petroleum and natural gas was 40.03 percent in August. In manufactured products, inflation stood at 11.39 percent in August, against 11.20 percent in July.

Month over Month Change in Major Groups of WPI:

1. Primary Articles (weight 22.62%): The index for this major group increased by 1.56 percent to 155.8 (provisional) in August, 2021 from 153.4 (provisional) for the month of July, 2021.

Prices of Minerals (12.22%), Non-food Articles (6.18%) and Crude Petroleum & Natural Gas (1.51%) increased in August, 2021 as compared to July, 2021. Prices of Food Articles (-0.25%) declined in August, 2021 as compared to July, 2021.

2. Fuel and Power (weight 13.15%): The index for this major group increased by (1.49%) to 116.0 (provisional) in August, 2021 from 114.3 (provisional) for the month of July, 2021. Prices of Mineral Oils (2.31%) and Coal (0.31%) increased in August, 2021 as compared to July, 2021. Prices of electricity remain unchanged.

3. Manufactured Products (weight 64.23%): The index for this major group increased by (0.76%) to 133.0 (provisional) in August, 2021 from 132.0 (provisional) for the month of July, 2021. Out of the 22 NIC two-digit groups for Manufactured Products, 14 groups have witnessed increase in prices; 6 groups have witnessed decrease and for two groups the prices remained unchanged in August, 2021 as compared to July, 2021.

The increase in prices in mainly contributed by manufacture of basic metals; food products; chemicals and chemical products; electrical equipment and manufacture of textiles. Some of the groups that have witnessed decrease in prices are manufacture of other manufacturing; pharmaceuticals, medicinal chemical and botanical products; leather and related products; other transport equipment and tobacco products in August 2021 as compared to July 2021.