India’s wholesale price index (WPI) inflation cooled to 11.16%, mirroring the ease in the retail inflation print for July, and adding strength to the argument that price pressures are transient in the economy. The surge and the drop in WPI inflation that followed it have a large base effect push because of the pandemic. Analysts said WPI inflation may remain in double digits for two-three months and, thereafter, it may taper off. In other words, food inflation cooled, while price pressures in manufactured products remained in check. Inflation in manufactured products may remain under check due to the slack in the domestic economy, according to economists.

Source: Mint August 16, 2021 14:16 UTC