WPI inflation hits 5-mth high in Aug, but stays in negative

Easing veg prices saw wholesale food inflation fall to 5.62% in August after 7.75% in July

- Rhik Kundu

India's wholesale price index (WPI) inflation remained negative for the fifth consecutive month in August but, at -0.52%, it was the closest it got to positive territory, a rise ascribed to fuel and power prices.

The contraction in WPI inflation marked a five-month high, according to data released by the commerce and industry ministry on Thursday.

It was-1.36% in July, -4.12% in June, -3.48% in May and-0.92 in April. A year ago, the WPI inflation stood at 12.41%. Economists polled by Reuters had estimated the WPI inflation to come in at -1.36% in August.

Though fuel and power prices declined in August, the contraction was slower than in the previous month-it was -6.03% in August, compared to -12.79% in July.

In manufactured products, the inflation contracted to -2.37% in August from -2.51% in July.

Easing vegetable prices saw wholesale food inflation fall to 5.62% in August after shooting up to 7.75% in July.