India's wholesale price index (WPI) inflation for the month of August turned positive after a gap of four months. With lockdown easing, producers have begun to command pricing power in the otherwise disrupted market.
As per the data released by the industry department today, WPI inflation for August came in at 0.16% as against contraction of 0.58% in the previous month. Inflation for manufactured goods surged to 1.27% from 0.51% during the same period. Nonetheless crude prices eased 17.44% in comparison to the year-ago period, while at the same time prices of fuel also decreased 9.7% from a year-ago period.
Also, as most of the categories placed in the WPI index surged in prices from their year-ago level such as food products, oils, beverages, tobacco, pharmaceuticals, cement, basic metals among others.
Nonetheless, retail inflation measured by CPI basis which the RBI decides its monetary policy remains above the RBI's targeted levels, raising hopes that the central bank will maintain the status quo.