India’s August wholesale inflation eases to 1.31% as fuel prices turn negative

India’s wholesale price index rose 1.31% in August from a year earlier, government data released on Tuesday showed.

Economists polled by Reuters had estimated wholesale price inflation at 1.85% in August. Inflation was at 2.04% in July.

Food prices rose 3.26% year-on-year from a 3.55% increase in July. Cereal prices rose 8.44% over last year, compared to an 8.96% on-year increase in July.

Vegetable prices fell 10.01% on-year from a 8.93% drop in July.

Manufactured product prices increased 1.22% year-on-year against a 1.58% rise in the previous month. Fuel and power prices fell 0.67% on-year compared with a 1.72% increase in July.

Last week, data showed India’s retail inflation remained below the central bank’s target of 4% for the second consecutive month, but vegetable prices continued to soar, dampening hopes of a dovish stance in the next monetary policy meeting.

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