WPI inflation rises to 23-months high of 3.55% in July 2016

Core inflation rises to 0.1% in July 2016

The Wholesale Price Index (WPI)-based inflation jumped to 23-months high of 3.55% in July 2016. An increase in inflation was driven surge in inflation for all three major sub-groups- primary articles, fuel & power and manufactured products in July 2016.

Inflation of primary articles increased to 9.4% in July 2016 from 5.5% in June 2016. The inflation for manufactured products accelerated to 1.8% in July 2016. Further, the inflation for fuel items jumped to (-) 1% in July 2016 from (-) 3.6% in June 2016.

As per major commodity group-wise, inflation increased for foodgrains, vegetables, fruits, egg, fish, raw cotton, oilseeds, raw rubber, crude petroleum, coal, mineral oils, sugar, grain mill products, edible oils, textiles, chemical products, cement, and gold & gold ornament in July 2016. On the other hand, inflation declined for spices, flowers, and electricity in July 2016.

Inflation of food items (food articles and food products) surged to double-digit level of 11.3% in July 2016 from 8.2% in June 2016. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 0.1% in July 2016 from (-) 1.3% in June 2016.

Core inflation (manufactured products excluding foods products) rose to 0.1% in July 2016, from (-) 0.4% in June 2016.

The contribution of primary articles to the overall inflation, at 3.55%, was 262 basis points (bps) in July 2016 compared with 154 bps in June 2016. The contribution of manufactured products was 102 bps compared with 65 bps, while that of fuel product group was (-) 16 bps against (-) 58 bps in June 2016.

The contribution of food items (food articles and food products) to inflation rose to 342 bps in 3.55% in July 2016 compared with 249 bps to 1.62% in June 2016. Meanwhile, the contribution of non-food items (all commodities excluding food items) was 08 bps in July 2016 compared with (-) 89 bps in June 2016.

As per the revised data, the inflation figure for May 2016 was revised up to 1.2% compared with 0.8% reported provisionally.

Powered by Capital Market - Live News