The annual rate of inflation based on the All India Wholesale Price Index (WPI) number edged up to 0.52 per cent for August.

 

 

According to figures released by the Ministry of Commerce and Industry, Positive rate of inflation in August 2025 is primarily due to an increase in prices of food products, other manufacturing, non-food articles, other non-metallic mineral products and other transport equipment, etc. However, the figures showed, the prices of fuels such as petrol, diesel and natural gas continued to decline during August, with the fuel inflation declining further in the negative zone to minus 3.17 per cent. 

 

 

Meanwhile, according to figures released by the Ministry of Statistics last week, the country’s inflation rate based on the Consumer Price Index (CPI) edged up to 2.07 per cent in August, although prices of food continued to decline during the month, easing the burden on the common man.

 

 

The headline inflation in August was marginally higher than the 1.61 per cent in July this year, which was the lowest level of year-on-year retail inflation since June 2017. However, the inflation rate is well within the RBI’s target rate of 4 per cent, which allows the central bank to continue with the soft money policy to spur growth.An increase in headline inflation and food inflation during August compared to July is mainly attributed to an increase in inflation of meat and fish, edible oil and fats, eggs and personal care and affects.