India's August WPI Hits 9.92% as Fuel Inflation Jumps to 22.93%
Updated
Updated · Millennium Post · Sep 14
India's August WPI Hits 9.92% as Fuel Inflation Jumps to 22.93%
3 articles · Updated · Millennium Post · Sep 14
Summary
India’s wholesale inflation edged up to 9.92% in August from 9.78% in July, marking the second-highest reading in the new 2022-23 base series.
Fuel and power drove much of the increase, with inflation in that basket accelerating to 22.93% from 20.05% as higher global energy prices lifted mineral oils, natural gas and petroleum products.
Food inflation also rose to 7.05% from 6.65%, while manufactured items hit a series-high 8.37%, led by food products, basic metals, chemicals, rubber and plastics, and motor vehicles.
Producer-price inflation climbed to 9.81% from 9.6%, and economists said the West Asia crisis, deficient rain and a weaker currency are likely to keep wholesale prices under pressure.
India Ratings sees WPI reaching 10.2% in September, while Icra expects it to stay above 9.5%-10% in September-October before easing if global energy and commodity prices cool.