August wholesale inflation stays in negative zone for fifth straight month; at -0.52%

Wholesale inflation remained in the negative zone for the fifth straight month in August, but came in slightly higher at -0.52% compared to July.

The wholesale price index (WPI) based inflation rate has been in the negative since April and was -1.36% in July. In August last year it was 12.48%.

Inflation in food articles remained in double digits at 10.60% in August, lower than 14.25% in July.

"The negative rate of inflation in August 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products as compared to the corresponding month of previous year,” the commerce and industry ministry said on Thursday.

Fuel and power basket inflation was at -6.03% in August, against -12.79% in July.

In manufactured products, inflation rate was -2.37%, as against -2.51% in July.

The RBI last month kept key interest rate unchanged at 6.5 per cent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.

The central bank takes into account retail or consumer price index based inflation for formulating monetary policy. Retail inflation data for August came in at 6.83% in August, lower than 7.44% in July