<p>After a dip in retail price rise, country's wholesale price inflation in August came down to 4.53% backed by a decline in food and vegetable prices. In July, the rate of the Wholesale Price Index (WPI) inflation was 5.09%.</p>.<p>While food prices declined to (-) 4.04% in August, vegetable prices declined (-) 20%, the government data showed on Friday. But price rise in potato continued at close to 72%. Onion witnessed deflation of about 27% and fruits over 16%. Prices of pulses, too, continued to decline over 14% in August.</p>.<p>However, in the fuel and power segment, there was a double-digit inflation. Fuel and power saw inflation rising to 17.73%.</p>.<p>The major contributor was domestic cooking gas or LPG with its prices rising over 46% in the month of August. The prices of petrol went up by over 16% in the month under review and that of diesel by nearly 20%. The rate of inflation in crude oil was more than 53%.</p>.<p>The ease in wholesale prices came on the back of a softening consumer price inflation. Easing inflation may prompt the Reserve Bank of India to hike interest rates once again to support the weakening rupee.</p>.<p>The RBI had hiked policy interest rates by 25 basis points for the second consecutive month in August. The next policy review is due in early October.</p>
<p>After a dip in retail price rise, country's wholesale price inflation in August came down to 4.53% backed by a decline in food and vegetable prices. In July, the rate of the Wholesale Price Index (WPI) inflation was 5.09%.</p>.<p>While food prices declined to (-) 4.04% in August, vegetable prices declined (-) 20%, the government data showed on Friday. But price rise in potato continued at close to 72%. Onion witnessed deflation of about 27% and fruits over 16%. Prices of pulses, too, continued to decline over 14% in August.</p>.<p>However, in the fuel and power segment, there was a double-digit inflation. Fuel and power saw inflation rising to 17.73%.</p>.<p>The major contributor was domestic cooking gas or LPG with its prices rising over 46% in the month of August. The prices of petrol went up by over 16% in the month under review and that of diesel by nearly 20%. The rate of inflation in crude oil was more than 53%.</p>.<p>The ease in wholesale prices came on the back of a softening consumer price inflation. Easing inflation may prompt the Reserve Bank of India to hike interest rates once again to support the weakening rupee.</p>.<p>The RBI had hiked policy interest rates by 25 basis points for the second consecutive month in August. The next policy review is due in early October.</p>
