WPI inflation eases to 2.6 pct in September 2017

Amid worrying rise in the price of onions in the recent past, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 2.60 percent (provisional) for September as compared to 3.24 percent (provisional) for the previous month and 1.36 percent during the corresponding month of the previous year.

Also, build up inflation rate in the financial year so far was 0.97 percent, compared to a build up rate of 3.44 percent in the corresponding period of the previous year, an official note from the Ministry of Commerce and Industry stated.

The index for the 'Food Articles' group declined by 4 percent to 144.8 (provisional) from 150.8 (provisional) for the previous month, largely due to lower price of fruits and vegetables (15percent), betel leaves (6percent), ragi (4percent), bajra (3percent), pork, maize and tea (2percent each) and poultry chicken (1percent). However, the price of gram (10percent), arhar (3percent), masur, urad and fish-inland (2percent each) and jowar, egg, barley, condiments & spices and peas/chawali (1percent each) moved up.

The index for 'Non-Food Articles' group declined by 0.2 percent to 120.3 (provisional) from 120.6 (provisional) for the previous month due to lower price of floriculture (10percent), groundnut seed (5percent), raw cotton (3percent) and linseed (1percent). However, the price of copra (coconut) (12percent), raw silk (10percent), sunflower and guar seed (4percent each), raw jute, and raw rubber (3percent each), raw wool and soyabean (2percent each) and castor seed, skins (raw) (1percent each) moved up.

On the fuel and power front, the index for 'Mineral Oils' group rose by 3.3 percent to 79.1 (provisional) from 76.6 (provisional) for the previous month due to higher price of LPG (10percent), naphtha (8percent), ATF (5percent), petrol (3percent), furnace oil, kerosene and HSD (2percent each) and bitumen (1percent). However, the price of petroleum coke declined by one percent.

The index for 'Manufacture of Tobacco Products' group rose by 2.2 percent to 150.9 (provisional) from 147.7 (provisional) for the previous month due to higher price of cigarette (6%) and other tobacco products (1percent). However, the price of biri declined by two percent.

The index for 'Manufacture of Textiles' group rose by 0.6 percent to 113.4 (provisional) from 112.7 (provisional) for the previous month due to higher price of texturised and twisted yarn (2percent) and weaving and finishing of textiles, manufacture of cordage, rope, and cotton yarn (1percent each). However, the price of viscose yarn and manufacture of knitted and crocheted fabrics declined by 3 and 2 percent respectively.

The index for 'Manufacture of Wearing Apparel' group rose by 0.1 percent to 136.6 (provisional) from 136.5 (provisional) for the previous month due to higher price of trouser/pants made of cotton and/or mad-made fibre (2percent). However, the price of manufacture of knitted and crocheted apparel saw a marginal decline.

Also, the index for 'Manufacture of Leather and Related Products' group declined by 1.4 percent to 119.2 (provisional) from 120.9 (provisional) for the previous month due to lower price of chrome tanned leather (4percent) and leather shoe (1percent). However, the price of belt and other articles of leather (3percent), vegetable tanned leather and harness, saddles and other related items (2percent each) and canvas shoes and travel goods, handbags, office bags (1percent each) moved up.

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 4.41 percent in August, 2017 to 1.99 percent in September, 2017.