New Delhi, Sept 14 (KNN) The Wholesale Price Index (WPI) based inflation contracted to (-) 4.95 per cent in August for the tenth straight month, against negative 4.05 percent in July.

The contraction is mainly due to sharp fall in fuel costs, government data showed on Monday.

The wholesale fuel prices tumbled 16.50 per cent from a year ago, while food prices dropped 1.13 per cent year-on-year.

Prices of manufactured goods declined 1.92 per cent on year last month.

In August 2014, inflation was 3.85 per cent. However, onion and pulses turned costlier with inflation at 65.29 per cent and 36.40 per cent respectively during August, as per official data released today.

The CPI or retail inflation data is expected later in the day. CPI in July recorded a low of 3.78 per cent. (KNN Bureau)