Inflation increased again! Wholesale inflation rose to 0.16%, these items became expensive along with medicines, fruits and vegetables.

According to the data released by the Ministry of Commerce and Industry, the Wholesale Price Inflation in the country rose to 0.16% in August. Whereas, in July it was at -0.58%.

14th September, 2020

Wholesale Price Inflation figures have been released. According to these figures, wholesale inflation has increased in August. According to data released by the Ministry of Commerce and Industry, the wholesale inflation rate in the country rose to 0.16% in August. Whereas, in July it was at -0.58%.

The central government said that wholesale price index-based inflation (WPI) remained negative for four months, but increased in August. According to official figures, WPI was -1.57% in April. At the same time, it was -3.37% in May, -1.81% in June and -0.58% in July. Let us tell you that WPI rates generally reflect fluctuations and inflation in wholesale prices of goods for some time in the markets.

These items, including medicines, fruits and vegetables, became more expensive in
July than July in food products, beverages with fruits and vegetables, leather-related products, wood and wood products, medicines, medicinal chemicals and vegetable products, metals, electricity. There was an increase in the prices of equipment, tools and transport equipment. Inflation in food articles stood at 3.84% during August. Potato prices increased by 82.93%. At the same time, the inflation rate of vegetables was 7.03%. Fuel and electricity inflation was 9.68% in August. Whereas, it was 9.84% in the previous month. Inflation of manufacturing products increased to 1.27 percent in August from 0.51% in July. Let us tell you that WPI figures are released on 14th of every month.

Crude oil prices fell by 17.44% in August. At the same time, fuel prices, especially petrol and diesel prices, have decreased by 9.7% in August compared to the previous year. The Reserve Bank of India (RBI) said that the rate of inflation is still quite high. Hence interest rates have been kept unchanged. If we reduce interest rates, then the risk of inflation will increase further. The RBI has estimated inflation to be lower in the period October 2020 to March 2021. Only after this, interest rates are likely to be reduced.

What is the wholesale inflation rate?
Inflation rates in India generally reflect the fluctuations in commodity prices for some time. When prices of goods or services in a country are higher than normal, then this situation is called inflation. Purchasing power per unit decreases due to increase in prices of goods. In other words, it can also be said that there is an idea to measure the availability of currency in the market and increase in prices of goods. Many decisions of financial and monetary policies in India are made by the government according to the inflation rate based on the wholesale price index.

Category: Business

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Reported by:
Puja Jha