The negative rate of inflation in August 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products
Wholesale price inflation remained in the negative territory for the fifth straight month in August 2023 at (-)0.52 per cent. However, prices of food articles and fuel showed an uptick during the month.
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“The negative rate of inflation in August 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Thursday.
The wholesale price index (WPI) based inflation rate has been in the negative since April and was (-)1.36 per cent in July. In August last year, it was 12.48 per cent. Inflation in food articles remained in double digits at 10.60 per cent in August, lower than 14.25 per cent in July.
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Fuel and power basket inflation was at (-)6.03 per cent in August, against (-) 12.79 per cent in July. In manufactured products, the inflation rate was (-)2.37 per cent, as against (-)2.51 per cent in July.
The RBI last month kept the key interest rate unchanged at 6.5 per cent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.
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The central bank takes into account retail or Consumer Price Index-based inflation for formulating monetary policy. Retail inflation data for August came in at 6.83 per cent in August, lower than 7.44 per cent in July.
(With Inputs From PTI)
