Wholesale Price Index (WPI) based inflation declined to 5-year low of 3.74 percent in August 2014. This was revealed by the WPI data released on 15 September 2014 by the Office of the Economic Adviser under the Union Ministry of Commerce and Industry.
The WPI inflation in August 2014 is the lowest since October 2009, when it stood at 1.8 percent. The inflation measured on WPI was at 5.19 percent in July 2014 and 6.99 percent in August 2013.
The decline in the WPI-based inflation was mainly on account of declining prices of vegetable and other food articles.
Inflation in the food segment witnessed a significant decline to 5.15 percent in August 2014 as against 8.43 percent in July 2014. On the other hand, vegetable prices contracted 4.88 percent, the third continuous month of decline.
Inflation in the fuel and power segment which include LPG, petrol and diesel declined to 4.54 percent as compared to price rise of 7.40 percent seen in July.
Besides, the retail inflation measured by Consumer Price Index (CPI) also eased to 7.8 percent in August 2014 as compared to 7.96 percent in July 2014.
Meanwhile, wholesale inflation based on final index for June 2014 was revised upwards to 5.66 per cent from the provisional estimate of 5.43 percent.
Where: in India