WPI price inflation rises to 4-mth high of 0.52% in Aug

PTI New Delhi

Wholesale price inflation rose to a four-month high of 0.52 per cent in August as prices of food articles and manufactured items inched up, even though fuel and power basket witnessed easing.

Reversing the deflationary trend of the past two months, (-) 0.58 in July and (-) 0.19 per cent in June, the Wholesale Price Index (WPI)-based inflation rose to its highest level since April, when it was 0.85 per cent. Wholesale price inflation was 1.25 per cent in August last year.

"Positive rate of inflation in August 2025 is primarily due to an increase in prices of food products, manufacturing, non-food articles, non-metallic mineral products and transport equipment etc," the industry ministry said in a statement on Monday.

Deflation in food articles narrowed to 3.06 per cent in August, from 6.29 per cent in the previous month. Deflation in vegetables and pulses eased to 14.18 per cent and 14.85 per cent from 28.96 per cent and 15.12 per cent, respectively. In potato and onion, however, the deflation deepened to 44.11 per cent and 50.46 per cent in August, from 41.26 per cent and 44.38 per cent, respectively, in July.

Narrower food WPI deflation and higher core inflation have offset the deeper deflation in fuel in August, Barclays said, adding it expects modest increases in WPI in the coming months. In the case of manufactured products, inflation was higher at 2.55 per cent in August, as against 2.05 per cent in the month before.