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The annual rate of inflation based on the all-India Wholesale Price Index (WPI) for August 2024 eased to 1.31 per cent, a provisional figure compared to 2.04 per cent in July 2024.
According to the Ministry of Commerce and Industry, the rise in inflation is primarily due to increases in the prices of food articles, processed food products, textiles, and machinery and equipment. Despite the inflation, the rate has moderated from 2.04 per cent in July 2024, indicating some easing of price pressures. The WPI for all commodities in August stood at 154.5, showing a slight decrease from 155.2 in July. Primary articles, which hold a weightage of 22.62 per cent, registered an index of 194.9 with a year-on-year inflation rate of 2.42 per cent, down from 3.08 per cent in July. The drop in primary articles was driven by declining prices in minerals, crude petroleum, and natural gas. Meanwhile, the Fuel & Power category, representing 13.15 per cent of the WPI, saw its index inch up to 148.1, though it posted a deflation rate of -0.67 per cent for August, after showing 1.72 per cent inflation in July. Electricity prices saw an increase, while prices for mineral oils decreased. Manufactured products, which make up 64.23 per cent of the index, registered a minimal decline in their index from 141.7 in July to 141.6 in August, with an inflation rate of 1.22 per cent. The WPI Food Index, tracking prices of food articles and manufactured food products, fell from 195.4 in July to 193.2 in August. This decline translated into a lower annual food inflation rate, down to 3.26 per cent from 3.55 per cent in July. The drop in food prices, particularly in vegetables and fruits, contributed to the decline in overall food inflation. On a month-over-month (MoM) basis, the WPI declined by 0.45 per cent in August compared to July. Primary articles saw a decrease of 1.37 per cent, led by lower prices for minerals, crude petroleum, and food articles, although non-food articles showed a modest increase in prices. The Fuel & Power group experienced a slight increase of 0.14 per cent in its index, with higher electricity prices being a key factor. The Manufactured Products group saw a marginal decline of 0.07 per cent in August, with mixed trends across sectors. Some industries, such as food products, machinery, and motor vehicles, witnessed price increases, while others, including basic metals, chemicals, and textiles, recorded price decreases. The final WPI for June 2024 has been confirmed at 154.0, with an annual inflation rate of 3.43 per cent, based on a weighted response rate of 95.9 per cent. This finalization provides a clearer understanding of inflation trends over the past months. Looking ahead, the WPI for September 2024 is scheduled for release on October 14. (ANI)
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