WPI inflation accelerates to 3.9% in November 2017

Inflation at eight months high in November 2017

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, accelerated further higher to eight-month high 3.9% in November 2017 from 3.6% in October 2017. Among the three major components of the WPI index, the inflation for primary articles increased, while the inflation for manufactured products group was stable and that for fuel products declined in November 2017. Core inflation (manufactured products excluding foods products) moved up 3.2% in November 2017.

Inflation of primary articles jumped to 5.3% in November 2017 from 3.3% in October 2017. The inflation for manufactured products was flat at 2.6%, while the inflation for fuel items declined to 8.8% in November 2017 from 10.5% in October 2017.

As per major commodity group-wise, inflation increased for vegetables, spices, egg, fibres, oilseeds, floriculture, metallic minerals, tobacco products, textiles, leather products, chemical products, fabricated metal products, machinery & equipment and gold & ornament in November 2017. On the other hand, inflation of cereals, pulses, fish, poultry chicken, sugarcane, fodder, mineral oils, electricity, food products, wood products, paper products, rubber & plastic products, other non-metallic products, computer products, furniture declined in November 2017.

Inflation of food items (food articles and food products) increased to 4.1% in November 2017 from 3.2% in October 2017 level. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 3.9% in November 2017 from 3.7% in October 2017.

The contribution of primary articles to the overall inflation of 3.9% stood at 137 basis points (bps) in November 2017, showing rise from 87 bps to 3.6% in October 2017. The contribution of fuel product group declined to 91 bps against 105 bps in October 2017, while that of manufactured products notched down to 166 bps compared with 167 bps.

The contribution of food items (food articles and food products) to inflation moved up to 122 bps to 3.9% in November 2017 compared with 96 bps to 3.6% in October 2017. Meanwhile, the contribution of non-food items (all commodities excluding food items) rose to 273 bps in November 2017 compared with 263 bps in October 2017.

The WPI inflation stood at 2.8% in April-November FY2018 against 0.5% in April-November FY2017. The primary articles inflation eased to 1% in April-November FY2018 from 4% in April-November FY2017, while fuel products inflation increased to 9.7% from (-) 7.7%. The inflation for manufactured products jumped to 2.6% in April-November FY2018 from 0.5% in April-November FY2017.

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