Wholesale Inflation stands at 2.47% in March; manufacturing index rises

The Wholesale Price Index (WPI) eased gradually to 2.47% in month of March 2018 compared to growth rate of 2.48% in February 2018 and 3.02% in January 2018. Further the current month data was also lower compared to 5.11% in the corresponding period of the previous year. 

The official WPI for ‘All Commodities’ (Base: 2011-12=100) for the month of March, 2018 rose by 0.2 percent to 116.0 (provisional) from 115.8 (provisional) for the previous month.

source: tradingeconomics.com

The build up in inflation rate in the financial year so far was 2.47% compared to a build up rate of 5.11% in the corresponding period of the previous year.

Index of primary articles in WPI declined by 0.5% to 127.4 (provisional) from 128 (provisional) for the previous month. Under this, index for ‘Food Articles’ group declined by 0.4 percent to 137.2 (provisional) from 137.8 (provisional) for the previous month due to lower price of egg (5%), gram, tea, coffee, poultry chicken and condiments & spices (3% each), rajma (2%) and fish-inland, masur, bajra, fruits & vegetables and beef and buffalo meat (1% each).  However, the price of ragi (3%), jowar and fish-marine (2% each) and peas/chawali, moong, betel leaves, wheat, paddy and pork (1% each) moved up.

Furthermore, index for ‘Non-Food Articles’ group declined by 0.3 percent to 120.2 (provisional) from 120.6 (provisional) for the previous month due to lower price of guar seed (7%), niger seed (6%), floriculture (5%), raw cotton, cotton seed, skins (raw) and gingelly seed (3% each), copra (coconut) (2%) and linseed, castor seed, raw jute, groundnut seed and rape & mustard seed (1% each).  However, the price of raw silk (7%), mesta and hides (raw) (5% each), sunflower (4%), soyabean (3%), fodder (2%) and raw wool, coir fibre and raw rubber (1% each) moved up.

 Index for ‘Minerals’ group declined by 2.0 percent to 119.7 (provisional) from 122.2 (provisional) for the previous month due to lower price of copper concentrate (14%) and phosphorite (1%).  However, the price of iron ore (15%), chromite (13%), manganese ore (6%), limestone (5%) and zinc concentrate and lead concentrate (1% each) moved up.

Index for ‘Crude Petroleum & Natural Gas’ group declined by 0.5 percent to 80.2 (provisional) from 80.6 (provisional) for the previous month due to lower price of crude petroleum (1%).

The primary articles hold weightage of 22.62% in WPI. 

Going ahead, the fuel & power which bags 13.15% of total WPI, declined by 0.1% to 98.0 (provisional) from 98.1 (provisional) for the previous month. 

It was only manufacturing index who saw uptick in March month supporting the growth in WPI. This index rose by 0.4% to 115.7 (provisional) from 115.2 (provisional) for the previous month. This index holds 64.23% of WPI. 

 With this, the rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 0.07% in February, 2018 to (-) 0.07% in March, 2018. WPI Food Index holds 24.38% in the overall wholesale inflation.