Food inflation rises, but core turns into deflation, prompting rate cut hope
In August 2018, the WPI had risen to 4.62%
The government data said inflation in food articles was 6.15 per cent in July as against 6.98 per cent in the previous month
Inflation rate in food items remained elevated even as it inched down to 6.15 per cent in July
Data, released by the government last week, showed that the CPI inflation rate, in fact, rose to an eight-month high of 3.18 per cent in the month
The Wholesale Price Index (WPI)-based inflation was at 2.45 per cent in May. It was 5.68 per cent in June 2018
The Wholesale Price Index (WPI)-based inflation was at 3.18 per cent in March. It was 3.62 per cent in April 2018
Inflation in food articles hardened with a steep rise in prices of vegetables during March 2019
Economists are not sure whether it is an effect of rise in the minimum support price or drop in rabi sowing acreage
The trend is in line with the consumer price inflation rate, which declined to a 19-month low of 2.05 per cent in January from 2.11 in December
December food inflation rose to to 0.07 per cent as compared to -1.96% month on month (MoM)
November was the fifth month in a row when prices of food items kept declining
November food inflation also saw a drop to -1.96% as compared to -0.64% MoM
Vegetable deflation rate in September narrowed to 3.83 per cent year-on-year from 20.18 per cent the previous month
Though CPI inflation also rose in September compared to the previous month, the price rise was higher in WPI
Inflation in 'fuel and power' basket in September was 16.65 per cent
While inflation in liquefied petroleum gas (LPG) was 46.08 per cent, in diesel and petrol it was 19.90 per cent and 16.30 per cent, respectively, during August
The impact of firming input prices also showed up in manufactured products' inflation, which was up 62 bps
Inflation in 'fuel and power' basket rose sharply to 7.85 per cent in April from 4.70 per cent in March as prices of domestic fuel increased in line with rising global crude oil rates
Among vegetables, tomatoes saw a price fall of 26.48 per cent in terms of the wholesale price index