India's Wholesale Prices Stay In A Deflationary Zone In August

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Source: BQ Prime

India's wholesale prices contracted for the fifth straight month in August, led by lower food prices.

The wholesale price index contracted 0.52% in August against a 1.36% decline in July, according to data released by the Office of Economic Adviser on Wednesday.

WPI Inflation Internals (Year-On-Year)

  • The wholesale price index for manufactured products, the largest component of the index, saw a decline of 2.4%, compared with a deflation of 2.51% in the previous month.

  • The WPI inflation in primary articles grew 6.3%, compared with a rise of 7.6% in the previous month.

  • The WPI food article inflation in August stood at 10.6% against 14.3% in July. While potatoes saw deflation, wholesale inflation in onions rose to 31.4%, compared to 7.1% a month ago.

  • Wholesale prices in the fuel segment declined to 6%, compared to 12.8% in July.

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