Bad news: Inflation rises sharply in August



 New Delhi, Sep 14: Wholesale inflation rose to a four-month high of 3.24 per cent in August as prices of food articles, led by onions and vegetables, soared. 

Inflation based on the wholesale price index (WPI) was 1.88 per cent in July 2017 and 1.09 per cent in August 2016. 

The last such high level of inflation was witnessed in April when the rate of price rise was 3.85 per cent. 

The government data released today showed that prices of food articles went up by 5.75 per cent in August on a yearly basis, as against 2.15 per cent in July. 

Vegetable prices shot up by 44.91 per cent in August, as against 21.95 per cent in July.

Onion prices witnessed a sharp surge at 88.46 per cent in August, as against a contraction of 9.50 per cent in the previous month.

Inflation in manufactured products witnessed a slight increase at 2.45 per cent in August, against 2.18 per cent in July. 

In fuel and power segment, inflation saw a sharp surge to a near double digit inflation at 9.99 per cent, against 4.37 per cent in July.

Fuel inflation shot up as petrol and diesel prices continued to remain high relentlessly on global crude oil rates, while power tariffs shot through the roof on lower domestic production.

Apart from vegetables, the food articles that saw rise in prices include pulses, fruits (7.35 per cent), egg, meat and fish (3.93 per cent), cereals (0.21 per cent) and paddy (2.70 per cent). 

However, potato continued to see deflation at 43.82 per cent and pulses (-)30.16 per cent. 

The final print of June WPI inflation remained unchanged from provisional estimate of 0.90 per cent.

Data released earlier this week showed retail inflation rose to a five-month high of 3.36 per cent in August due to costlier vegetables and fruits.

Also industrial production grew by just 1.2 per cent in July from 4.5 per cent a year ago, bearing the brunt of a dismal show of the manufacturing sector.

Last month, the Reserve Bank cut policy repo rate by 0.25 per cent to 6 per cent citing reduction in inflation risk. The rate cut was the first in 10 months and brought policy rates to near 7-year low.

PTI

Don’t Miss

Bawana fire: Police ARRESTED factory owner
Five killed after gunmen storm luxury hotel in Kabul
Pakistan summons Indian envoy over cross-border firing
Don't miss: Sunny Leone's CRAZY pole dance performance
Ranbir Kapoor's actress leaves Bollywood, marries secretly
63rd Jio Filmfare Awards: Irrfan, Vidya GET best actors' award
PM Modi condoles deaths in Delhi warehouse fire
What's cooking..Shraddha in 'LOVE' with Baahubali Prabhas
Gabbar on sale for Rs 20000000..Know full list with price
Shame Shame Virat Army..India thrashes Pak to retain Blind WCup
Is your city GARBAGE-FREE..Govt star ratings will tell you
Bumper sale, DISCOUNTS on smartphones..Find the best deal
Yummy..Jaitley prepares Halwa, sweet Budget for you
Election Commission = Poll Agent of BJP, AAP returns fire
Deepika,Ranveer fall on Khiladi's feet
Ulta Chor..Pak fires at border, summons Indian diplomat for ceasefire violation
India-Pak War clouds darken..Heavy firing on border, situation tense
Kejriwal Missile..Action on AAP MLAs is CEC's PAYBACK GIFT to Modi
Padmavat = Baahubali...Know Deepika's trick
Sridevi's daughter Jhanvi will meet you on July 20..Book now
Cho Chweet...Shahid's cute daughter will melt your heart..In PICS
Chloe Sevigny not willing to work with Woody Allen
Jhanvi Kapoor's 'Dhadak' to release on July 20
Preity Zinta is pregnant; Pics go viral
Good News for Sunny Leone's fans
US government shuts down
This B'wood actress is pregnant; SEEN hiding baby bump
Zainab murder case: Two key suspects arrested
US selling F-35 jets to this country for $6.53 bn
Tension grips J&K's border residents

Most Recent

Most Popular