WPI inflation rises marginally to 2.9% in February 2019

Core inflation declines to 2.4% in February 2019

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, rose marginally to 2.9% in February 2019 from 10-month low of 2.8% in January 2019, while snapping consistent moderation in WPI inflation for last three straight months. The inflation rebounded slightly for fuel and manufactured products group, while the inflation for primary articles accelerated to 15-month high contributing to the rise in overall WPI inflation in February 2019. The core inflation (manufactured products excluding foods products) has declined to 2.4% in February 2019.

The WPI inflation is revised downwards to 3.5% for December 2018 from 3.8% reported earlier.

Inflation of primary articles increased to 4.8% in February 2019 from 3.5% in January 2019, while fuel and power group inflation also rose to 2.2% in February 2019. However, the manufactured products inflation dipped to 19-month low of 2.3% in February 2019.

As per major commodity group-wise, inflation moved up for vegetables, mineral oils, floriculture, cereals, food products, other non-metallic mineral products, pharmaceuticals, medicinal chemical and botanical products, eggs, meat & fish, crude petroleum & natural gas, pulses, fruits and electrical equipment. On the other hand, inflation of basic metals, metallic minerals, chemical products, milk, coal, fabricated metal products, oil seeds, rubber and plastics products, paper and paper products, textiles, electricity, condiments & spices, wearing apparel, furniture, leather and related products, other minerals etc declined in February 2019.

Inflation of food items (food articles and food products) increased to 3.3% in February 2019 from 1.8% in January 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) eased to 2.7% in February 2019 from 3.1% in January 2019.

The contribution of primary articles to the overall inflation of 2.9% increased to 121 basis points (bps) in February 2019, up from contribution of 90 bps to 2.8% in January 2019. The contribution of fuel product group rose to 25 bps against 20 bps in January 2019, while that of manufactured products eased to 144 bps in February 2019 from 166 bps in January 2019.

The contribution of food items (food articles and food products) to inflation jumped to 92 bps to 2.9% in February 2019 compared with 53 bps to 2.8% in January 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) declined to 197 bps in February 2019 from 222 bps in January 2019.

The WPI inflation stood at 4.4% in April-February FY2019 against 2.9% in April-February FY2018. The primary articles inflation moved up to 2.6% in April-February FY2019 from 1.4% in April-February FY2018, while fuel products inflation increased to 12.2% from 8.5%. The inflation for manufactured products rose to 3.8% in April-February FY2019 from 2.7% in April-February FY2018.

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