Wholesale price inflation nearly doubles to 3.24% in August

The annual rate of inflation, based on the wholesale price index (WPI) stood at 3.24 per cent in August 2017 against 1.88 per cent in the previous month, provisional figures released by the government showed.

Wholesale price inflation rate stood at 1.09 per cent during the corresponding month of the previous year.

Build-up of inflation the financial year so far (April-August 2017-18) was 1.41 per cent against 3.25 per cent in the corresponding period of the previous year

The spike was due mainly to a massive jump in food prices. Wholesale prices had steadily increased in July to 1.88 per cent from 0.90 per cent in June and an increase of 2.26 per cent reported in May.

On a segment-wise basis, prices of primary articles, which constitute 22.62 per cent of the WPI's total weightage, edged higher by 2.66 per cent from an increase of 0.46 per cent in July 2017.

However, the rise in WPI prices for primary articles during August was slower on a year-on-year basis at 4.78 per cent in August 2016.

The prices of food articles rose 5.75 per cent in August against 2.15 per cent during July 2017 and 4.93 per cent in August 2016.

In terms of food prices, the YoY wholesale inflation rate for onion was higher by 88.46 per cent, whereas for potatoes it plunged by (-) 43.82 per cent.

Overall vegetable prices in August rose 44.91 per cent, against a fall of (-) 7.75 per cent in the same month a year ago.

As per the data, on YoY basis, wheat became cheaper by (-)1.44 per cent, while protein-based food items such as eggs, meat and fish became dearer by 3.93 per cent.