Mumbai: The wholesale price inflation in August eased to 3.74%, its lowest level in nearly five years, government data showed on Monday. An easing in food and fuel prices helped the August inflation cool off significantly.
In July, wholesale prices rose 5.19% year-on-year, their slowest pace in five months. During August, food inflation eased to 5.15% against 8.43% in July, aided by a 44.70% year-on-year fall in onion prices.
The fuel and power inflation eased to 4.54% in August against 7.40% in July. A sharp fall in Brent crude prices saw petrol prices cut thrice in August. There are expectations that diesel prices may be cut for the first time in seven years. India imports three-fourth of its oil needs and a strong rupee helps cut import bill. The relative stability of the rupee against the dollar has also helped bring down the landed cost of crude.
The Reserve Bank of India’s next policy review meet is scheduled for September 30. Retail inflation, which RBI tracks for setting lending rates, edged down marginally to 7.8% in August from 7.96% a month earlier. The retail inflation data was released on Friday.
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