Wholesale inflation grew at 3.24% during August
Wholesale inflation or the WPI grew at 3.24 percent during August as compared to 1.88 percent in the month of July. The WPI or Wholesale Price Index for August, 2016, was 1.1 percent.
The rise in inflation is being attributed to increase in food and vegetable prices which are in turn linked to rising fuel prices. Among many factors contributing to high prices of vegetables, is the rise diesel prices as transportation cost increases due to it.
According to reports, the wholesale inflation of petrol and diesel rose by 24.55 percent and 20.30 percent, respectively in August 2017 as against the same month of last year.
In May, the government had said that the GST was unlikely to fan inflation. It remains to be seen as to what extent the GST has contributed to the inflation rate of August.
Latest price data released by the commerce ministry today showed that food prices, especially pulses continued to fall owing to a supply glut, while a rise in certain food items pulled up the inflation level, reported Moneycontrol.