WPI inflation dips to 4.6% in November 2018

Core inflation declines to 4.9% in November 2018

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, dipped to three months low of 4.6% in November 2018, while snapping rise for last two straight months. The decline in inflation for all three major sub-groups - primary, fuel and manufactured products group has contributed to the decline in overall WPI inflation in November 2018. The core inflation (manufactured products excluding foods products) also eased to 4.9% in November 2018.

The WPI inflation is revised upwards to 5.2% for September 2018 from 5.1% reported earlier.

Inflation of primary articles dipped to 0.9% in November 2018 from 1.8% in October 2018. The manufactured products inflation declined to 4.2%, while fuel and power group inflation also dipped to 16.3% in November 2018.

As per major commodity group-wise, inflation dipped vegetables, mineral oils, basic metals, fruits, other non-metallic mineral products, other manufacturing, food products, fabricated metal products, except machinery and equipment, wearing apparel. On the other hand, inflation of eggs,meat & fish, computer, electronic and optical products, electrical equipment, paper and paper products, cereals, motor vehicles, trailers and semi-trailers, oil seeds, other non-food articles, pulses, electricity etc moved up in November 2018.

Inflation of food items (food articles and food products) dipped to (-) 2.0% in November 2018 from (-) 0.6% in October 2018 level. Meanwhile, inflation of non-food items (all commodities excluding food items) also declined to 7.4% in November 2018 in 7.7% in October 2018.

The contribution of primary articles to the overall inflation of 4.6% dipped to 23 basis points (bps) in November 2018, down from contribution of 47 bps to 5.3% in October 2018. The contribution of fuel product group declined to 174 bps against 197 bps in October 2018, while that of manufactured products eased to 265 bps in November 2018 from 283 bps in October 2018.

The contribution of food items (food articles and food products) to inflation declined to (-) 59 bps to 4.6% in November 2018 compared with (-) 19 bps to 5.3% in October 2018. Meanwhile, the contribution of non-food items (all commodities excluding food items) declined to 517 bps in November 2018 from 542 bps in October 2018.

The WPI inflation stood at 4.9% in April-November FY2019 against 2.9% in April-November FY2018. The primary articles inflation moved up to 2.3% in April-November FY2019 from 1.1% in April-November FY2018, while fuel products inflation increased to 15.6% from 9.7%. The inflation for manufactured products rose to 4.1% in April-November FY2019 from 2.6% in April-November FY2018.

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