Wholesale inflation hits four-month high of 3.24% in Aug

 

India’s wholesale inflation accelerated to a four-month high of 3.24% in August, in line with the trend in retail inflation on the back of rising food and fuel prices.  Data released by the department of industrial policy and promotion (DIPP) showed food inflation quickened to 5.75% in August from 2.15% a month ago. Inflation in manufactured items picked up 2.45% in August from 2.18% a month ago. Fuel inflation rose by 10% as petrol and diesel prices continued to soar on rising crude oil prices and high central and state taxes. Retail inflation quickened to a five-month high of 3.36% in August due to costlier vegetables and fruits. India’s GDP growth also unexpectedly slowed to 5.7% in the June quarter, the slowest pace in three years, underlining the disruption caused by the uncertainty related to the rollout of GST even as the Indian economy is struggling to recover from the shock of demonetization.