WPI inflation records four month high with 3.24pct

The Wholesale Price Index (WPI) for the month of August, 2017 rose by 0.8 percent, to 114.8 (provisional) from 113.9 (provisional) for the previous month, marking its four month high.

Meanwhile, the annual rate of inflation based on monthly WPI, stood at 3.24 percent (provisional) for the month of August, 2017 as compared to 1.88 percent (provisional) for the previous month and 1.09 percent during the corresponding month of the previous year.

In the 'Food Articles' group, a surge of 2.2 percent was noted due to higher price of betel leaves (nine percent), fruits and vegetables (eight percent), ragi (six percent), condiments and spices (three percent), peas/chawali and fish-marine (two percent each) and arhar, beef and buffalo meat, fish-inland, milk and wheat (one percent each). However, the price of poultry chicken (10 percent), urad (five percent), coffee and tea (three percent each) and jowar, maize, masur, bajra, moong, paddy and egg (one percent each) declined.

The index for 'Non-Food Articles' group rose by 1.8 percent due to higher price of floriculture (25 percent), copra (coconut) (23 percent), guar seed (eight percent), safflower (kardi seed) (four percent), castor seed (three percent), gingelly seed, rape and mustard seed and raw wool (two percent each). However, the price of raw silk (four percent), linseed and groundnut seed (three percent each), sunflower, raw jute and raw rubber (two percent each), cotton seed and raw cotton (one percent each) declined.

On the fuel and power front, a 0.9 percent rise was recorded, largely due to a 1.7 percent rise in mineral oils such as naphtha (five percent), petrol and kerosene (three percent each), HSD and ATF (two percent each) and furnace oil (one percent). However, the price of LPG (5 percent) and bitumen and petroleum coke (1 percent each) declined.

The index for 'Manufacture of Tobacco Products' group rose by 2.9 percent due to higher price of other tobacco products (seven percent) and beedi (six percent). However, the price of cigarette (four percent) declined.

Meanwhile, the index for 'Manufacture of Textiles' group declined by 0.6 percent due to lower price of cotton yarn (two percent) and synthetic yarn and manufacture of other textiles (one percent each). However, the price of texturised and twisted yarn (one percent) moved up.

The index for 'Manufacture of Leather and Related Products' group rose by 1.2 due to higher price of chrome tanned leather (three percent), belt and other articles of leather and leather shoe (two percent each) and waterproof footwear (one percent). However, the price of gloves of leather (eight percent), travel goods, handbags, office bags (three percent) and harness, saddles and other related items (one percent) declined.

Also, the rate of inflation based on WPI Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group increased from 2.12 percent in July 2017 to 4.41 percent in August 2017.