Following the two-month relaxation trend, WPI inflation it increased in August and remained in double digits for the fifth consecutive month. In July 2021, IPM inflation stood at 11.16%.
In August 2020, the IPM inflation was 0.41%.
“The high rate of inflation in August 2021 is mainly due to the increase in the prices of non-food items, mineral oils; crude oil and natural gas; manufactured products such as base metals; food products; textiles; chemicals and chemicals, etc. . compared to corresponding to the month of the previous year, “said the Ministry of Commerce and Industry in a statement.
Inflation in food items decreased for the fourth consecutive month, registering (-) 1.29% in August, from 0% in July, even when onion and legume prices soared. Inflation for onions was high, at 62.78 percent, while that for legumes was 9.41 percent. In vegetables it was (-) 13.30 percent in August.
Crude oil and natural gas inflation was 40.03 percent in August.
In manufactured products, inflation stood at 11.39 percent in August, compared to 11.20 percent in July.
The RBI, which mainly takes into account retail inflation, in its monetary policy last month kept interest rates unchanged at all-time lows. It projected the CPI or retail inflation at 5.7 percent during 2021-22, up from its previous projection of 5.1 percent.
Data released Monday showed that retail inflation eased to a four-month low of 5.3 percent in August, from 5.59 percent the previous month, led by subdued prices for food items.