The annual inflation rate, measured by the All India Wholesale Price Index (WPI), stood at 1.31 percent (provisional) in August 2024 compared to August 2023. The positive inflation rate in August 2024 is mainly attributed to rising prices of food articles, processed food products, various manufactured goods, textiles, and machinery & equipment. Over the past three months, the WPI index numbers and inflation rates for all commodities have fluctuated, with a month-over-month change in the WPI for August 2024 showing a decline of 0.45 percent compared to July 2024.
The Primary Articles Index for this group fell by 1.37 percent to 194.9 (provisional) in August 2024, down from 197.6 (provisional) in July 2024. Prices of Minerals decreased by 2.66 percent, Crude Petroleum and Natural Gas by 1.84 percent, and Food Articles by 1.83 percent in August 2024 compared to July 2024. However, the price of Non-food Articles increased by 1.65 percent during the same period.
The Fuel & Power Index rose by 0.14 percent to 148.1 (provisional) in August 2024 from 147.9 (provisional) in July 2024. While the price of Electricity increased by 1.59 percent, the price of Mineral oils dropped by 0.32 percent, and Coal prices remained unchanged in August 2024 compared to July 2024.
The Manufactured Products Index showed a slight decline of 0.07 percent, decreasing to 141.6 (provisional) in August 2024 from 141.7 (provisional) in July 2024. Out of the 22 NIC two-digit groups for manufactured goods, 12 groups saw price increases, 7 groups saw price decreases, and 3 groups experienced no change. Notable groups that experienced price increases included Food products, Fabricated Metal products excluding Machinery and equipment, Motor Vehicles, Trailers and Semi-trailers, Machinery and equipment, and Paper and Paper products. In contrast, prices declined for groups such as Basic Metals, other manufacturing, Non-metallic Mineral products, Chemicals and Chemical products, and Textiles in August 2024 compared to July 2024.
The WPI Food Index, which includes ‘Food articles’ from the primary articles group and ‘Food products’ from the manufactured products group, decreased from 195.4 in July 2024 to 193.2 in August 2024. The annual inflation rate based on the WPI Food Index declined from 3.55 percent in July 2024 to 3.26 percent in August 2024.
