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Anand Rathi Report
After four months of being in deflection, wholesale price index (WPI) inflation turned positive in August 2020.
During the month WPI inflation was 0.2% versus down 0.6% the previous month.
The pickup in WPI inflation was led by minerals. In terms of broad categories, while inflation for both primary and manufactured products shows some rise, food in flation softened.
While after bottoming out at -3.4% in May 2020, WPI inflation is gathering some pace, there is no general sign of inflation picking up.
The rise in WPI inflation was led largely by products which were earlier either at deflation or low inflation, such as basic metals, crude oil and mineral products.
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