Preliminary data provided by the Ministry of Commerce and Industry showed that in August the wholesale price index increased by 1.31% per annum, slowing sharply compared to July (+2.04% per annum), and recording the weakest growth in the last 4 months. Economists had expected prices to rise by 1.8% per annum.
According to the report, prices for primary articles rose by 2.42% per annum after an increase of 3.08% per annum in July, while food price growth slowed to 3.26% per annum from 3.55% per annum. Cereal prices rose by 8.44%, a slight decrease from July's 8.96%, and vegetable prices fell by 10.01%, continuing a downward trend from the 8.93% drop in July. The cost of industrial goods increased by 1.22% per annum, accelerating compared to July (+1.58% per annum). Meanwhile, the cost of fuel and electricity decreased by 0.67%, in contrast to the 1.72% rise in July.
The data also showed that on a monthly basis, wholesale prices fell by 0.45%, partially offsetting the July increase (+0.78%).
Last week, data showed that retail inflation in India remains below the central bank's target of 4% for the second month in a row, but vegetable prices continue to rise, dampening hopes of a dovish stance in the next monetary policy meeting.