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India’s wholesale price index inflation for August surged to a high of 9.92%, driven by a spike in prices of food products, manufactured items, and the high cost of fuel and power, data released by the Commerce Ministry on Monday showed. This marks a rise of 14 basis points in WPI inflation from 9.78% in July.
The WPI index for August also climbed to 110.8 against 110.0 reported in the prior month. In the manufacturing segment. Inflation in the WPI food index rose to 7.05% from 6.65% reported in July.
For August, the inflation rate in the manufactured products segment stood at 8.37% against 8.29% posted in the previous month. The fuel and power inflation rate saw a sharp increase to 22.93% from 20.05%, while inflation in the primary articles wing was reported at 7.76%, declining from 8.52% reported in July.
Food articles weight jumps sharply
The indices for primary articles stood at 118.1, against 117.2 reported in July. This was mainly led by a jump in the food articles group to 119.3 against 118.2 reported in the previous month. The non-food articles group also saw a jump to 113.3 in August compared to 112.6 in the previous month. However, the weight of the minerals group segment declined to 124.8 from 125.4 reported in July.
Except for electricity, all the commodities in the fuel and power group witnessed a heavy rise in their weight, with the group reporting its WPI at 108.3 against 105.5 reported in the month prior. The manufactured products index posted its WPI at 108.8, up from 108.8 reported in July.
“The latest movement in wholesale prices warrants close monitoring, particularly from the perspective of industrial input costs, business margins and competitiveness. The increase in WPI inflation has been accompanied by significant price pressures in fuel and power, manufactured products and selected primary commodities, said Rajeev Juneja, President, PHDCCI.
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WPI inflation rate has been rising since the beginning of FY27, as geopolitical tensions between the US and the Middle East, which resulted in the blockade of the key waterway passage-Strait of Hormuz- resulted in the increase of fuel prices.
Before the beginning of the West Asia conflict, India, a net oil importer, used to source nearly 30% of its power requirements via the chokepoint. The Reserve Bank of India kept its key policy rates unchanged at 5.25% at its previous meeting.
Analysts and banks have reported that RBI may consider shallow rate hikes if tensions between Washington and Tehran remain unresolved.
TOPICSCommerce Ministryfood inflationinflationIranReserve Bank of IndiaWest AsiaWPIWPI Inflation + 0 MoreThis article was first uploaded on September fourteen, twenty twenty-six, at one minutes past two in the afternoon. © IE Online Media Services (P) Ltd