photo courtesy : NewsDrum
New Delhi, 14 September—Rising trend in the Wholesale price-based inflation index to 9.92 per cent in August from 9.78 per cent in July reflecting rising prices of food, manufactured items, and fuel and power is worrying the Modi government.
Inflation in the food index rose to 7.05 per cent in August, from 6.65 per cent in July, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI).
The latest reading comes under the revised CPI series, which uses 2024 as the base year. The increase points to renewed price pressure for consumers, particularly from food and several household-related categories.
In manufactured items, WPI inflation was at a series high of 8.37 per cent, higher than 8.29 per cent in July.
In the fuel and power basket, wholesale price index (WPI)-based inflation was 22.93 per cent.
Price pressures strengthened across both rural and urban India during the month. Rural inflation climbed to 5.23 per cent in August from 4.84 per cent in July, while urban inflation increased to 4.31 per cent from 3.96 per cent
Across groups, mineral oils (containing petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in August 2026,” the Commerce and Industry Ministry said while releasing the WPI data.
The WPI has been on an upward trajectory since the beginning of this fiscal year as the West Asia war and the resultant blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, pushed up global crude and fertiliser costs with a spillover effect on food prices.
The Reserve Bank’s monetary policy committee, last month, kept benchmark policy rates unchanged at 5.25 per cent and projected retail inflation at 5 per cent for FY27, citing deficient and uneven South-West monsoon amidst El Nino conditions.
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