High fuel prices push up August wholesale inflation to 11.39 percent

High fuel prices push up August wholesale inflation to 11.39 percent

Amid high fuel prices, the annual rate of inflation based on the monthly wholesale price index (WPI) has increased to 11.39 percent in August from the previous month’s 11.16 percent, the government data stated on Tuesday.

The escalation was due to an increase in the cost of fuel and manufactured items, as per the statement issued by the Ministry of Commerce and Industry. In August last year, the wholesale price index (WPI) inflation was 0.41 percent.

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The fuel and power prices increased to 26.09 percent in August 2021 year-on-year compared with 26.02 percent in July. The manufactured product prices increased to 11.39 percent as compared with 11.2 percent in the previous month.

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However, wholesale prices of food rose at a slower pace of 3.43 percent in August on-year compared to 4.46 percent in the previous month.

“The high rate of inflation in August 2021 is primarily due to the 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 the previous year,” said the statement.

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In manufactured products, inflation stood at 11.39 percent in August against 11.2 percent in July.

But inflation in food articles fell by 1.29 percent in August from zero percent. Inflation in onions was high at 62.78 percent while that in pulses was 9.41 percent.

In vegetables, it was minus 13.3 percent. Inflation in crude petroleum and natural gas was 40.03 percent. A day earlier, the government said retail inflation eased to 5.3 percent due to falling food prices.

-PTC News