Wholesale Price Inflation Soars To 4 Year High

The official Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) for the month of June, 2018 rose by 1.1% to 119.2 (provisional) from 117.9 (provisional) for the previous month. The annual rate of inflation, based on monthly WPI, stood at 5.77% (provisional) for the month of June, 2018 (over June, 2017) as compared to 4.43% (provisional) for the previous month and 0.90% during the corresponding month of the previous year. This is the highest level in four years for the WPI. Build up inflation rate in the financial year so far was 2.49% compared to a build up rate of -0.44% in the corresponding period of the previous year.

The movement of the index for the various commodity groups is summarized below:-

Primary Articles (Weight 22.62%)

The index for this major group rose by 2.0% to 133.2 (provisional) from 130.6 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for 'Food Articles' group rose by 1.1% to 141.7 (provisional) from 140.1 (provisional) for the previous month due to higher price of egg (5%), fruits & vegetables (4%), maize and fish-marine (3% each), jowar (2%) and barley, bajra, beef & buffalo meat, wheat, coffee, condiments & spices, milk and poultry chicken (1% each). However, the price of betel leaves (14%), urad, arhar and gram (2% each) and ragi, masur and moong (1% each) declined
The index for 'Non-Food Articles' group rose by 2.9% to 122.5 (provisional) from 119.1 (provisional) for the previous month due to higher price of raw cotton (11%), industrial wood (8%), safflower (kardi seed) (3%), sunflower, groundnut seed, cotton seed, linseed, mesta and hides (raw) (2% each) and raw rubber, raw wool, castor seed, gingelly seed and coir fibre (1% each). However, the price of niger seed (7%), guar seed and raw silk (4% each), copra (coconut) and soyabean (2% each) and floriculture (1%) declined.

The index for 'Minerals' group rose by 1.4% to 140.2 (provisional) from 138.3 (provisional) for the previous month due to higher price of manganese ore (6%), iron ore and zinc concentrate (4% each) and limestone and lead concentrate (2% each). However, the price of garnet (10%), sillimanite (8%) and chromite (5%) declined.

The index for 'Crude Petroleum & Natural Gas' group rose by 8.1% to 95.2 (provisional) from 88.1 (provisional) for the previous month due to higher price of crude petroleum (11%) and natural gas (1%).

Fuel & Power (Weight 13.15%)

The index for this major group rose by 3.0% to 104.1 (provisional) from 101.1 (provisional) for the previous month.

Manufactured Products (Weight 64.23%)

The index for this major group rose by 0.4% to 117.3 (provisional) from 116.8 (provisional) for the previous month.

WPI Food Index (Weight 24.38%)

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 1.12% in May, 2018 to 1.56% in June, 2018.

Final Index For April, 2018 (Base Year: 2011-12=100)

For the month of April, 2018, the final Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) stood at 117.3 as compared to 116.8 (provisional) and annual rate of inflation based on final index stood at 3.62% as compared to 3.18% (provisional) respectively as reported on 14.05.2018.

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