Retail inflation rises to 4.8%, wholesale inflation to 9.9% in August

India’s retail inflation rose to 4.8% in August from 4.4% in July, and the wholesale price inflation increased to 9.9% from 9.7%, according to government data released on Monday.

Retail inflation measures the change in consumer prices in a month on a year-on-year basis.

The wholesale price index tracks the average changes in prices of a basket of goods that are sold in bulk before they make their way to retail consumers. The base year for calculating wholesale price index is 2022-’23.

The rise in retail inflation was largely driven by higher food prices. Food inflation increased to 5.9% in August from 5.5% in July, according to the National Statistics Office.

Prices of staples such as ginger, onion and garlic rose sharply. Inflation in food-serving services also increased to 8.4% from 7.7%. The transport inflation rose to 4.6% from 4.4%.

The wholesale inflation has also been rising since the beginning of the financial year because of the war in West Asia and the resulting blockade of the Strait of Hormuz, PTI reported. India imports 88% of its crude oil and about half of its natural gas, much of it through the strait.

The disruption has also had a spillover effect on food prices.

The wholesale food inflation also rose to 7% in August from 6.6% in July. Inflation in primary...

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