India’s wholesale price-based inflation surged slightly in August due to a surge in the prices of non-food items and fuel products, the government said today.
Wholesale prices in India accelerated at a rate of 11.39% in August, faster than the 11.16% pace in the month before. The rate was a negative 0.41% in August last year, according to a release from the commerce and industry ministry.
The food price inflation index decreased from to 3.43% in August from 4.46% in July, despite a spike in prices of onion and pulses. Onion price inflation was 62.78% in August, while the price of pulses rose by 9.41%. Manufactured product price inflation was 11.39% in August, higher than 11.2% in July.
Easing out of lockdown
Consumption in India is rising as the federal and provincial governments have lifted nearly all of the lockdown restrictions that were imposed in April to prevent the spread of coronavirus infections, which crossed the 100,000 daily cases mark. Hospitality and airlines are among the few sectors that are still operating below full capacity.
"The high rate of inflation in August 2021 is primarily due to a rise in prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared to the corresponding month of the previous year," the ministry said.
The prices of primary goods, which have a 22.62% weight in the broader index, surged 1.56% in August due to a 12.2% surge in mineral prices and 6.18% rise in non-food articles.
The fuel and power index, with a 13.15% weight in the general index, surged 1.49% in August over the previous month. Prices for electricity remained unchanged in this segment, while those of mineral oils rose 2.3% in August.