India’s retail inflation marginally down at 6.69% in August

Meanwhile, the wholesale price-based inflation in India rose the most in five months, climbing 0.16% in August as manufactured products turned costlier.
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Retail inflation marginally softened in August to 6.69% as compared to 6.93% in July on the back of increase in vegetables, pulses, spices and food & beverages prices, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed.

The prices of food and beverages overall saw an increase of 8.9% in August 2020 as compared to August 2019. Prices of essential items saw an increase with vegetable prices increasing by 11.41% compared to August 2019. Prices of pulses and products increased by 14.44%, while meat and fish saw an inflation of 16.50%. Prices of pan, tobacco and intoxicants increased by 11.22%.

In non-consumables, prices of products in personal care and effects increased by 14.45%.

Except for vegetables, urban areas saw higher inflation in all other categories than rural areas.

Meanwhile, the wholesale price-based inflation in India rose the most in five months, climbing 0.16% in August as manufactured products turned costlier.

Retail inflation is the price that a consumer pays to purchase a product, while WPI is measured based on prices at the wholesale level.

The wholesale price index-based (WPI) inflation had remained negative for four months -- April (-) 1.57%, May (-) 3.37%, June (-) 1.81% and July (-) 0.58% -- as coronavirus induced lockdown hurt economic activity.

WPI inflation in March was 0.42%.

"The annual rate of inflation, based on monthly WPI, stood at (0.16%) (provisional) for the month of August, 2020 (over August, 2019) as compared to 1.17% during the corresponding month of the previous year," the commerce and industry ministry said in a statement on Monday.

Inflation in food articles during August stood at 3.84%, led by vegetables and pulses at 7.03% and 9.86%, respectively; while in egg, meat and fish it was 6.23%.

The rate of rise in potato prices was high at 82.93%, while in onion it was (-) 34.48%.

Fuel and power inflation fell 9.68% in August, as against 9.84% in the previous month.

Manufactured products, however, witnessed hardening of inflation at 1.27% in August against 0.51% in July.

The government said in a media release that as various pandemic related restrictions were gradually lifted and non-essential activities started resuming operations, availability of price data has also improved.

The Price data is collected from representative and selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of August, 2020, NSO collected prices from 96.1% villages and 96.4% urban markets.

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