Aug WPI inflation at 6-month high of 6.1%

Food prices soar 18%; June WPI inflation revised to 5.16% from 4.86%.

WPI inflation rose at the fastest pace for six months in August, driven by an 18% jump in food prices, a reminder of the economic pressure new central bank governor Raghuram Rajan faces ahead of his first policy meeting this week.

The Wholesale Price Index (WPI) based inflation rose to a six-month high of 6.1%  in August against 5.79 in July, according to the data released by Ministry of Commerce and Industry today.

The build up inflation rate in the financial year so far was 3.91% compared to a build up rate of 4.35% in the corresponding period of 2012-13.

Food inflation stood at a massive 18.18% in August against 11.91% in July. The inflation in vegetables soared to 77.81% in August against 46.59% in the previous month. Onion prices rose by a mammoth 244.62% against 144.94%.

The inflation for manufactured products eased to 1.90% against 2.81% in July. Experts say that this indicates low demand in the economy.

Inflation in fuel and power rose marginally to 11.34% in August from 11.31% in the previous month.

The Consumer Price Index (CPI)-based inflation, which measures retail inflation, had softened to 9.52% in August from 9.64% a month ago.

The reading for June was revised to 5.16% from 4.86%, data released by the Ministry of Commerce and Industry showed.

India's new central bank chief Raghuram Rajan will detail his first mid-quarter monetary policy review on Friday and this is the last data before its announcement.

Highlights:

Food articles inflation at 18.18% vs 11.91% m-o-m.

Primary articles inflation at 11.72% vs 8.99% m-o-m.

Manufactured products inflation 1.90% vs 2.81% m-o-m.

Fuel and power group inflation 11.34% vs 11.31% m-o-m.

Month	Aug12	Sep12	Oct12	Nov12	Dec12	Jan13	Feb13	Mar13	Apr13	May13	June13	July13	Aug13
Wholesale Inflation (%)	8.01	8.07	7.32	7.24	7.31	7.31	7.28	5.65	4.77	4.58	5.16	5.79	6.1