New Delhi: The wholesale price-based inflation decreased to 12.41% in August for the third consecutive month as prices for manufactured goods declined but food prices increased.

Inflation based on the Wholesale Price Index was 13.93% in July and 11.64% in August of the previous year.

August is the 17th month in a row that wholesale price inflation has reached double digits (WPI).

In May of this year, the WPI hit a record high of 15.88%.

Inflation in food products increased to 12.37% in August from 10.77% in July.

Vegetable prices increased at a pace of 22.29 percent in the reviewed month as opposed to 18.25 percent in July.

Inflation in the gasoline and power basket was 33.67% in August compared to 43.75% in July. It was 7.51 percent in manufactured goods and (-) 13.48 percent in oil seeds, respectively.

The Reserve Bank of India (RBI) bases its monetary policy mostly on retail inflation.

For the eighth consecutive month, retail inflation has exceeded the Reserve Bank’s upper tolerance limit of 6%, peaking at 7% in August.

The RBI has increased the benchmark interest rate three times this year, to 5.40 percent, in an effort to curb persistently high inflation.

Retail inflation is predicted by the central bank to average 6.7% between 2022 and 2023.