WPI Inflation August 2022: Big success in inflation front, wholesale inflation reduced to 12.41 percent in August
On Monday, after retail inflation remained above 7 per cent, the market was beginning to heat up on speculation about the rise in inflation. With the reduction in wholesale inflation, it is expected that soon the prices of many things in the market may come down.
Abhilasha 
Even after the increase in the retail inflation (CPI Inflation) for the month of August, the common people can get relief from inflation soon. Inflation based on wholesale prices (WPI) has come down for the third consecutive month in August at 12.41 per cent. Inflation based on the Wholesale Price Index stood at 13.93 per cent in July and 11.64 per cent in August last year.
This is the 17th consecutive month that Wholesale Price Inflation (WPI) has remained in double digits. Let us tell you that in May this year, the Wholesale Price Index touched a record high of 15.88 percent.
Food inflation rose to 12.37 per cent in August from 10.77 per cent in July. The prices of vegetables increased by 22.29 per cent during this period as against 18.25 per cent in July. Inflation in the fuel and electricity basket was 33.67 per cent in August as against 43.75 per cent in July. In readymade products and oilseeds it was 7.51 per cent and (-) 13.48 per cent respectively. This means that the prices of oilseeds have come down drastically.
7 percent retail inflation
Although wholesale inflation has moderated, the Reserve Bank of India (RBI) may accept retail inflation as a benchmark for formulating its monetary policy. Retail inflation remained above the Reserve Bank's maximum tolerance band of 6 per cent for the eighth consecutive month. Inflation in August was 7 percent.
What will be the next step of RBI
To control inflation, the RBI has increased the key interest rates three times to 5.40 per cent this year. Retail inflation is expected to average 6.7 per cent in 2022-23 as per the central bank's projections.
