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Crisil inflation tracker: Headline WPI trips on food, core intact

In the first three quarters of this fiscal year, WPI inflation has averaged 2.9 per cent, compared with 0.7 per cent in the corresponding period a year ago

Business Standard 

Food inflation, inflation

based on the (WPI) eased to 3.6 per cent in December, reversing a four-month run-up. In November, WPI was at 3.9 per cent. The dip was led by an easing in food inflation, and mildly lower core — the latter reflecting weak pricing power of manufacturers. Fuel surged higher, while manufactured products’ stayed unchanged for the third month in a row.

Curiously, the two measures — WPI and (CPI) — saw a divergence in December. rose to 5.2 per cent, from 4.9 per cent in November, driven by three factors — One, vegetables inflation, which eased at the wholesale price level but firmed up at the consumer price level; two, housing inflation, which is tracked under the and surged, reflecting the impact of higher house rent allowances paid to government employees; and three, in personal care and effects, which is also measured under the and rose mainly due to higher taxes on services under the goods and services tax regime.

In the first three quarters of this fiscal year, WPI has averaged 2.9 per cent, compared with 0.7 per cent in the corresponding period a year ago. Most of the pick-up is due to higher oil and commodity prices, though lower food has capped the upside. Food dipped to 2.3 per cent, compared with 6.3 per cent, while fuel rose to 9.7 per cent, from -6.5 per cent, and manufactured rose to 2.6 per cent, from 0.7 per cent.

Crisil inflation tracker: Headline WPI trips on food, core intact

First Published: Tue, January 16 2018. 01:37 IST
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