Indians still prefer cash despite rising digital payments

On the other hand, the food prices were eased out.

With the marginal rise in manufactured goods prices, the wholesale price-based inflation increased to 11.39% in August. On the other hand, the food prices were eased out. The WPI inflation continued to rise and be double-digit in the fifth consecutive month. It stood at 11.16% in July 2021.

The WPI stood at 0.41% in August 2020. The ministry of commerce and industry Ministry said in a statement that the reason for higher inflation rate in the month of August has been increase prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year.

The food prices eased out in the fourth consecutive month. It was reported -1.29% in August in comparison to 0% in July. Though the prices of onions and pulses were hiked. In August the rate was -13.30% for vegetables.

In August, crude petroleum and natural gas recorded inflation of 40.03%.

The inflation stood at 11.39% in August, against 11.20% in July for manufactured products.

The RBI, In its monetary policy review in August, had kept the key interest rate unchanged. The RBI’s bi-monthly monetary policy is decided in a way that it manages the retail inflation.

According to the data released by National Statistical Office (NSO), retail inflation declined marginally to 5.3% in August. In July 2020, the Consumer Price Index (CPI) inflation was 5.59%, whereas in August 2020 it was 6.69%.