The annual rate of inflation, based on monthly WPI (wholesale price inflation) rose to 0.16 per cent in August 2020, as compared to 1.17 per cent during the corresponding month of the previous year as food items and manufactured products turned costlier. The WPI for the month of July stood at -0.58 per cent.
The WPI inflation was in the negative territory for four straight months -- April (-) 1.57 per cent, May (-) 3.37 per cent, June (-) 1.81 per cent and July (-) 0.58 per cent.
Ten out of the 17 categories of manufactured products in index including food products, pharmaceuticals, cement, basic metals witnessed rise in prices from the corresponding period of last year after opening up of coronavirus lockdown, the government data showed on Monday.
Inflation in food articles during August stood at 3.84 per cent. The rate of rise in potato prices stood at 82.93 per cent. Inflation in vegetables stood at 7.03 per cent, while in onion it was (-) 34.48 per cent. Fuel and power inflation fell 9.68 per cent in August, as against 9.84 per cent in the previous month. Manufactured products, however, witnessed hardening of inflation at 1.27 per cent in August against 0.51 per cent in July.
"The WPI for August 2020 has been compiled at a weighted response rate of 76 per cent, while the final figure for June 2020 is based on the weighted response rate of 88 per cent. The provisional figures of WPI will undergo revision as per the final revision policy of WPI, Price Data are collected from selected institutional sources and industrial establishments spread across the country online through web based portal maintained by the National Informatics Centre (NIC)," the industry department said in a release.
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