WPI Inflation eases to 3.1% in April 2019

Core WPI inflation dipps to 1.9% in April 2019

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, declined to 3.1% in April 2019 from 3.2% in March 2019, while snapping rise for last two straight months. The inflation declined for primary articles continued increase, while the inflation for fuel and power group and manufactured products growth declined contributing to the fall in overall WPI inflation in April 2019. The core inflation (manufactured products excluding foods products) plunged to 1.9% in April 2019.

The WPI inflation is retained unchanged at 2.9% for February 2019 from 2.9% reported earlier.

Inflation of primary articles increased to 57-months high of 6.5% in April 2019 from 5.1% in March 2019. However, the inflation for fuel and power group inflation declined to 3.8% and the manufactured products inflation also dipped to 30-month low of 1.7% in April 2019.

Inflation of food items (food articles and food products) increased to 4.9% in April 2019 from 3.9% in March 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) declined to 2.4% in April 2019 from 3.0% in March 2019.

The contribution of primary articles to the overall inflation of 3.1% increased to 164 basis points (bps) in April 2019, up from contribution of 126 bps to 3.2% in March 2019. The contribution of fuel product group declined to 43 bps against 60 bps in March 2019, while that of manufactured products eased to 110 bps in April 2019 from 138 bps in March 2019.

The contribution of food items (food articles and food products) to inflation jumped to 139 bps to 3.1% in April 2019 compared with 109 bps to 3.2% in March 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) declined to 174 bps in April 2019 from 218 bps in March 2019.

The WPI inflation moved up to 4.3% in April-March FY2019 against 2.9% in April-March FY2018, while recording rise for third straight year. The primary articles inflation moved up to 2.7% in April-March FY2019 from 1.4% in April-March FY2018, while fuel products inflation increased to 11.6% from 8.2%. The inflation for manufactured products rose to 3.7% in April-March FY2019 from 2.7% in April-March FY2018.

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