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India’s Wholesale Price Index Soared 1.31% in Aug 2024

18 September 20243 mins read by Angel One
For the month of August 2024 (over August 2023), the yearly rate of inflation based on all India Wholesale Price Index (WPI) statistics is 1.31% (Provisional).
India’s Wholesale Price Index Soared 1.31% in Aug 2024
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India’s wholesale price inflation edged up to 1.31% in August 2024 compared to the same month last year. This modest increase, based on the Wholesale Price Index (WPI), was primarily driven by rising prices in food articles, processed food products, textiles, machinery, and other manufactured goods. However, the month-over-month change in WPI for August was negative at -0.45% compared to July 2024.

Let’s delve deeper into the WPI data for August:

  • Primary Articles: This category, which accounts for 22.62% of the WPI, saw a decline of 1.37% due to falling prices of minerals, crude oil, and natural gas. However, non-food articles within this group witnessed a price increase.
  • Fuel and Power: The index for this sector (weighting 13.15%) edged slightly higher by 0.14% due to a rise in electricity prices, while mineral oil prices dipped. Coal prices remained stable.
  • Manufactured Products: This segment, constituting the largest share (64.23%) of the WPI, experienced a minor decline of 0.07%. Interestingly, twelve out of the twenty-two tracked sub-categories saw price increases, including food products, fabricated metals, motor vehicles, machinery, and paper products. Conversely, prices decreased in basic metals, textiles, chemicals, and other manufacturing sectors.

The WPI Food Index, encompassing both food articles and food products, also showed a slight decrease from July to August 2024, leading to a lower annual inflation rate for food items.

This table summarises the key takeaways from the WPI data for August 2024. It highlights the weight of each major category in the WPI calculation and the direction and magnitude of their price changes compared to July 2024.

Category Weight Change in Index (%)
Primary Articles 22.62 -1.37
Fuel and Power 13.15 0.14
Manufactured Products 64.23 -0.07

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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