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Wholesale Price Index – Rate of inflation in August is 11.39 percent

New Delhi – The annual rate of inflation is 11.39 percent (Provisional) for the month of August, 2021 as compared to 0.41% in August, 2020. The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum & natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year.

The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade has released index numbers of wholesale price in India (Base Year: 2011-12) for the month of August, 2021 (Provisional) and for the month of June, 2021 (Final).

Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.

The annual change in the components of WPI index and inflation in the last three months is given below.

The month over month change in WPI index for the month of August, 2021 (as compared to July, 2021) was 1.04 percent. The monthly change in WPI index for last six-month is summarized below:

Month over Month Change in Major Groups of WPI:

Primary Articles (weight 22.62%): – The index for this major group increased by (1.56%) to 155.8 (provisional) in August, 2021 from 153.4 (provisional) for the month of July, 2021. Prices of Minerals (12.22%), Non-food Articles (6.18%) and Crude Petroleum & Natural Gas (1.51%) increased in August, 2021 as compared to July, 2021. Prices of Food Articles (-0.25%) declined in August, 2021 as compared to July, 2021.

Fuel & Power (weight 13.15%): – The index for this major group increased by (1.49%) to 116.0 (provisional) in August, 2021 from 114.3 (provisional) for the month of July, 2021. Prices of Mineral Oils (2.31%) and Coal (0.31%) increased in August, 2021 as compared to July, 2021. Prices of electricity remain unchanged.

Manufactured Products (weight 64.23%): – The index for this major group increased by (0.76%) to 133.0 (provisional) in August, 2021 from 132.0 (provisional) for the month of July, 2021. Out of the 22 NIC two-digit groups for Manufactured Products, 14 groups have witnessed increase in prices; 6 groups have witnessed decrease and for two groups the prices remained unchanged in August, 2021 as compared to July, 2021. The increase in prices in mainly contributed by manufacture of basic metals; food products; chemicals and chemical products; electrical equipment and manufacture of textiles. Some of the groups that have witnessed decrease in prices are manufacture of other manufacturing; pharmaceuticals, medicinal chemical and botanical products; leather and related products; other transport equipment and tobacco productsin August 2021 as compared to July 2021.

WPI food index (weight 24.38%): The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 159.3 in July, 2021 to 159.6 in August, 2021. The rate of inflation based on WPI Food Index decreased from 4.46% in July, 2021 to 3.43% in August, 2021.

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