Data released by the Ministry of Trade and Industry on Thursday showed that inflation, as measured by the Wholesale Price Index (WPI), contracted 0.5%, smaller than the 1.4% decline in July. The negative inflation rate in August 2023 is mainly due to the decline in prices of mineral oils, base metals, chemicals, textiles and foodstuffs compared to the corresponding month of the previous year, the statement said.
Food inflation this month was 10.6%. Vegetable prices rose by 48.4% annually, while inflation for onions was 31.4%. Pulse inflation this month was 10.5%.
Fuel and electricity fell 6% in August, while manufactured products fell 2.4%. “With the support of high base fade, there is some rebound WPI inflation That was reflected in the second half,” said Rajani Sinha, chief economist at rating agency CareEdge.