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WPI Inflation: Rises To 11.39% In August Due To Manufactured Goods


In August, wholesale price-based inflation increased modestly to 11.39 percent, owing primarily to rising costs of manufactured products, despite lower prices of food items.


WPI inflation surged in August, breaking a two-month downward trend, and remained in double digits for the fifth month in a row. WPI inflation was 11.16 percent in July 2021.

WPI Inflation: Rises To 11.39% In August Due To Manufactured Goods

"The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum & natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the ministry statement said.

According to the report, vegetable prices fell by (-) 13.30% in August, compared to (-) 8.73% in July. Potato prices declined by (-)39.81 percent, while onion prices increased by 62.78 percent. Apart from that, pulse prices increased by 9.41% last month, while fruit prices decreased by (-)5.10%. In August, the cost of eggs, pork, and fish increased by 3.46 percent.

In August, the gasoline and power category increased from 26.02 percent to 26.09 percent. Petrol prices increased by 61.53%, HSD (High-Speed Diesel) prices increased by 50.69%, and LPG prices increased by 48.11%.


Last month, the manufactured products section increased by 11.39 percent, owing to a 40.49 percent increase in vegetable and animal oils and fats.

The Food Index, which includes 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products group, rose from 159.3 in July to 159.6 in August 2021. Inflation as measured by the WPI Food Index fell from 4.46 percent in July 2021 to 3.43 percent in August 2021.

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