WPI Inflation Hits Two-Year High of 3.74%, Prices of Pulses Soar

Prices of pulses have risen over the past few months. (Photo: iStockphoto)

• Wholesale Price inflation ( WPI) soared to a two-year high of 3.74 percent in August on account of rise in prices of pulses and some manufactured items, prompting the industry to step up its demand for structural reforms.
  
  
• Experts, however, attributed the rise in WPI inflation during the month to low base effect saying it was (-)5.06 percent in August 2015. The wholesale price-based inflation, reflecting the annual rate of price rise, in July stood at 3.55 percent.
  
  
• WPI inflation, which was in the negative zone from November 2014 to March 2016, has been on an upward trend for seventh straight month. The earlier high in WPI inflation was recorded at 3.74 per cent in August 2014.
  
  
• Inflation in pulses continued to rise at 34.55 percent in August, while potato saw a price rise at 66.72 percent during the month. The rate of inflation in sugar was at 35.36 percent and fruits rose by 13.91 percent during the month.