WPI Inflation dips to 2.0% in June 2019

Core inflation dips to 0.8% in June 2019

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, declined to a 23-month low of 2.0% in June 2019 from 2.5% in May 2019. The inflation for primary articles moved up, while the inflation for fuel and power group turned negative and manufactured products dipped contributing to the fall in overall WPI inflation in June 2019. The core inflation (manufactured products excluding foods products) plunged to 0.8% in June 2019.

The WPI inflation is revised marginally upwards to 3.2% for April 2019 from 3.1% reported earlier.

Inflation of primary articles increased to 6.7% in June 2019 from 6.2% in May 2019. However, the inflation for fuel and power group inflation turned negative to (-) 2.2% and the manufactured products inflation also dipped further to 0.9% in June 2019.

Inflation of food items (food articles and food products) eased slightly to 5.0% in June 2019 from 5.1% in May 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) declined to 0.9% in June 2019 from 1.5% in May 2019.

The contribution of primary articles to the overall inflation of 2.0% increased to 169 basis points (bps) in June 2019, from contribution of 155 bps to 2.5% in May 2019. The contribution of fuel product group turned negative at (-) 25 bps against 11 bps in May 2019, while that of manufactured products eased to 59 bps in June 2019 from 81 bps in May 2019.

The contribution of food items (food articles and food products) to inflation eased to 141 bps to 2.0% in June 2019 compared with 142 bps to 2.5% in May 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) declined to 63 bps in June 2019 from 105 bps in May 2019.

The WPI inflation fell to 2.6% in April-June FY2020 against 4.7% in April-June FY2019. The primary articles inflation moved up to 6.5% in April-June FY2020 from 3.7% in April-June FY2019, while fuel products inflation tumbled to 0.8% from 12.3%. The inflation for manufactured products dipped to 1.4% in April-June FY2020 from 3.8% in April-June FY2019.

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