WPI inflation moves up to 3.2% in March 2019

WPI inflation rises to 4.3% in FY2019 from 2.9% in FY2018

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, increased to 3.2% in March 2019 from 2.9% in February 2019 and 10-month low of 2.8% in January 2019. The inflation rebounded slightly for fuel and power group, while the inflation for primary articles also accelerated to 16-month high contributing to the rise in overall WPI inflation in March 2019. The manufactured products inflation eased, but the core inflation (manufactured products excluding foods products) rose slightly to 2.5% in March 2019.

The WPI inflation is retained unchanged at 2.8% for January 2019 from 2.8% reported earlier.

Inflation of primary articles increased to 5.1% in March 2019 from 4.8% in February 2019, while fuel and power group inflation jumped to 5.4% in March 2019. However, the manufactured products inflation dipped to 20-month low of 2.2% in March 2019.

As per major commodity group-wise, inflation moved up for vegetables, mineral oils, other manufacturing, crude petroleum & natural gas, fibres, other transport equipment, tobacco products, machinery and equipment, fabricated metal products, except machinery and equipment, floriculture, wood and of products of wood and cork, milk and condiments & spices. On the other hand, inflation of metallic minerals, other non-food articles, food products, fruits, textiles, cereals, eggs, meat & fish, basic metals, other non-metallic mineral products, oil seeds, electrical equipment, other minerals, furniture, chemicals and chemical products, computer, electronic and optical products etc declined in March 2019.

Inflation of food items (food articles and food products) increased to 3.9% in March 2019 from 3.3% in February 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) rose to 3.0% in March 2019 from 2.7% in February 2019.

The contribution of primary articles to the overall inflation of 3.2% increased to 126 basis points (bps) in March 2019, up from contribution of 121 bps to 2.9% in February 2019. The contribution of fuel product group jumped to 60 bps against 25 bps in February 2019, while that of manufactured products eased to 138 bps in March 2019 from 144 bps in February 2019.

The contribution of food items (food articles and food products) to inflation jumped to 109 bps to 3.2% in March 2019 compared with 92 bps to 2.9% in February 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) increased to 218 bps in March 2019 from 197 bps in February 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 2.8% 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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