WPI surges to 5.28 percent in October; marks a 4 month high

Wholesale inflation based on the wholesale price index (WPI) stood at 5.28 percent in October as compared to 5.13 percent in September.

The WPI for the month under review rose by 0.7 percent to 121.7 from 120.8 for the previous month, showed data from the Ministry of Commerce & Industry.

Build up inflation rate in the financial year so far was 4.64% compared to a build up rate of 2.12% in the corresponding period of the previous year.

For primary articles, the index rose by 0.7 percent to 136.3 (provisional) from 135.4 (provisional) for the previous month. The groups and items which showed variations during the month rose by 0.9 percent to 145.8 (provisional) from 144.5 (provisional) for the previous month due to higher price of peas/chawali (6 percent), bajra (5 percent), jowar and poultry chicken (4 percent each), urad and maize (3 percent each), barley, gram, fruits & vegetables, pork and egg (2 percent each) and wheat, beef & buffalo meat and ragi (1 percent each).

The index for 'Non-Food Articles' group declined by 1.1 percent to 123.4 (provisional) from 124.8 for the previous month due to lower price of floriculture (9 percent), copra (coconut) (6 percent), raw silk and skins (raw) (4 percent each), tobacco, raw rubber and hides (raw) (3 percent each), soyabean (2 percent) and fodder (1 percent). However, the price of gingelly seed (6 percent), castor seed and sunflower (5 percent each), guar seed and safflower (kardi seed) (3 percent each) and mesta, raw wool, niger seed, raw jute, groundnut seed and cotton seed (1 percent each) moved up.

The index for 'Crude Petroleum & Natural Gas' group rose by 4.1 percent to 99.8 from 95.9 for the previous month due to higher price of crude petroleum (6 percent).

For fuel & power, the index rose by 3.6 percent to 111.1 (provisional) from 107.2 (provisional) for the previous month.

The index for 'Mineral Oils' group rose by 5.4 percent to 107.4 (provisional) from 101.9 (provisional) for the previous month due to higher price of bitumen (18 percent), furnace oil (10 percent), naphtha (9 percent), ATF (8 percent), LPG (6 percent), kerosene, HSD and petrol (4 percent each) and petroleum coke (1 percent).

The index for 'Manufacture of Tobacco Products' group rose by 0.7 percent to 150.6 (provisional) from 149.6 (provisional) for the previous month due to higher price of cigarette and other tobacco products (1 percent each).

The index for 'Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products' group rose by 0.9 percent to 124.3 (provisional) from 123.2 (provisional) for the previous month due to higher price of anti allergic drugs (6%), anti inflammatory preparation (5 percent), anti cancer drugs (4 percent) and simvastatin, digestive enzymes and antacids, api and formulations of vitamins, antibiotics and preparations thereof, plastic capsules, cotton wool (medicinal), antiseptics and disinfectants and anti-retroviral drugs for HIV treatment (1 percent each).