New Delhi: India’s wholesale inflation fell to a four-month low of 4.53 per cent in August on softening of food prices. The retail inflation too in August had fallen to 10 months low of 3.69 per cent, as per data released earlier.
The fall in wholesale and retail inflation should bring relief to the Modi government battling opposition attack over high fuel prices.
The effect of rising petrol and diesel prices has been neutralised by deflation in food articles, which resulted a lower wholesale price index (WPI) inflation for August. The WPI-based inflation stood at 5.09 per cent in July and 3.24 per cent in August last year.
“The decline in the WPI inflation in August 2018 was largely in line with forecasts, driven primarily by the deepening disinflation in food items, particularly perishables like vegetables and fruits, as well as some easing in primary non-food articles,,” said Aditi Nayar, principal economist, ICRA.
