WPI inflation eases to four-month low of 5.4% in June 2014

April 2014 inflation figure revised upwards to 5.55% from 5.2% reported earlier

The Wholesale Price Index (WPI) based inflation eased to four-month low of 5.43% in June 2014 from 6.01% in May 2014. The decline in inflation for primary articles and fuel products helped overall inflation to ease, while the inflation for manufactured products group increased slightly in June 2014. The inflation for primary articles declined to 6.8% in June 2014 from 8.6% in May 2014. The inflation for fuel and power group also eased from 10.5% in May 2014 to 9% in June 2014, while the inflation for manufactured products rose to 3.61% in June 2014 from 3.55% in May 2014. As per the major commodity group wise inflation, the inflation for foodgrains, vegetables, 'egg, meat & fish', fibers, flowers, crude petroleum, mineral oils, wood products, paper products, leather products rubber products, transport equipments etc eased contributing to the overall decline in inflation in June 2014. On the other hand, the inflation for milk, fruits, spices, coffee, manufactured food products, textiles items, basic metals, machinery & machine tools etc increased in June 2014 from May 2014 level. The inflation for food items (food articles and food products) eased to 6.2% in May 2014 from 7% in May 2014. Meanwhile, the inflation for non-food items (all commodities excluding food items) also declined to 5.1% in May 2014 from 5.7% in May 2014. However, the core inflation (manufactured products excluding foods products) rose to 3.9% in May 2014 from 3.8% in May 2014. The contribution of primary articles to the overall inflation declined to 34.4% (at 186 bps to 5.43% inflation) in June 2014 from 37.8% (at 229 bps of 6.01%) in May 2014. The contribution of fuel product group eased slightly from 29% (176 bps) in May 2014 to 28.1% (152 bps) in June 2014, while that of manufactured products increased to 37.5% (203 bps) in June 2014 from 33.2% (201 bps) in May 2014. As per the revised data available, the inflation figure for April 2014 has been revised upwards to 5.55% from 5.2% reported earlier.

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