NEW DELHI: After the softening of retail inflation, the Wholesale Price Index (WPI)-based inflation has eased to a four-month low of 4.53 per cent in August 2018 on account of lower food prices. However, high double-digit inflation in fuel at 17.73 per cent remained a matter of concern.
According to the government data released on Friday, WPI inflation has lowered from 5.09 per cent in July. However, on a year-on-year basis, inflation in August 2018 was higher, as it stood at 3.24 per cent a year ago. Also, the WPI inflation for June 2018 was revised downwards to 5.68 per cent from the provisional estimate of 5.77 per cent.
Food articles registered deflation at 4.04 per cent in August 2018, against 2.16 per cent last year. Deflation in vegetables was 20.18 per cent in August, against 14.07 per cent in July.
Among food articles, inflation of potato prices continued to rule high at 71.89 per cent in August, while onions and fruits witnessed deflation of 26.80 per cent and 16.40 per cent respectively. Deflation continued in pulses at 14.23 per cent.
Offsetting the trend was the double-digit inflation in the ‘fuel and power’ basket, at 17.73 per cent, in line with high global crude oil rates.
While inflation in liquefied petroleum gas (LPG) was 46.08 per cent, in diesel and petrol categories, it was 19.90 per cent and 16.30 per cent respectively.
The government data released earlier this week showed that retail inflation eased to a 10-month low of 3.69 per cent in August. RBI mainly takes into account retail inflation data while formulating its monetary policy.
5.09% was the WPI inflation in July 2018
3.24% was the inflation in August 2017, lower than that in August this year
5.68% was the revised rate of inflation in June 2018