WPI inflation rises to 3.2% in April 2018

Core inflation flat at 3.6% in April 2018

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, rebounded to four-month high of 3.2% in April 2018, while snapping consistent moderation for last four straight months. The inflation for all three major components of the WPI index - primary articles, fuel & power and manufactured products has increased in April 2018 from March 2018 level. Core inflation (manufactured products excluding foods products) was flat at 3.6% in April 2018.

Inflation of primary articles surged to 1.4% in April 2018 from 0.2% in March 2018, while the inflation for manufactured products rose to 3.1% in April 2018. Further, the inflation for fuel items jumped to 7.9% in April 2018 from 4.7% in March 2018.

As per major commodity group-wise, inflation increased for cereals, vegetables, fruits, spices, tea, fibres, crude oil, mineral oils, leather products, chemicals, pharmaceuticals, rubber and plastic products, electrical equipment, machinery & equipment, other transport equipment, gold ornament and furniture. On the other hand, inflation of pulses, milk, egg, oilseeds, floriculture, coal, electricity, beverages, tobacco products, textiles, wood products, paper products, cement, basic metals, fabricated metal products declined in April 2018.

Inflation of food items (food articles and food products) increased to 0.7% in April 2018 from (-) 0.1% in March 2018 level. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 4.2% in April 2018 in 3.6% in March 2018.

The contribution of primary articles to the overall inflation of 3.2% increased to 36 basis points (bps) in April 2018, up from contribution of 06 bps to 2.5% in March 2018. The contribution of fuel product group jumped to 84 bps against 51 bps in March 2018, while that of manufactured products also moved up to 199 bps in April 2018 from 193 bps in March 2018.

The contribution of food items (food articles and food products) to inflation turned positive at 19 bps to 3.2% in April 2018 compared with (-) 02 bps to 2.5% in March 2018. Meanwhile, the contribution of non-food items (all commodities excluding food items) jumped to 295 bps in April 2018 from 254 bps in March 2018.

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