Inflation Drops to 1.31% in August

• Inflation based on the Wholesale Price Index (WPI) slowed to a four-month low of 1.31% in August from July’s 2.04%.
• Moderation in price rise in food items and manufactured goods contributed to this slowdown.
• Fuel and power costs slipped into a deflation of 0.7% from a 1.7% increase.
• Food inflation eased to a 10-month low of 3.3% in August, driven by a year-on-year decline in prices for vegetables, eggs, meat, and fish.
• Base effects played a key role in this moderation, with vegetable prices up 48.4% last August.
• Cereals inflation remained firm at 8.44%, with paddy prices up 9.1%.
• Wheat inflation accelerated to 7.3% from July’s 7%.
• Pulses inflation was a sharp 18.6%, while potato inflation sped to 78%.