WPI inflation rises to (-) 4.5% in September 2015

Core inflation flat at (-) 1.9% in September 2015

The Wholesale Price Index (WPI)-based inflation increased to (-) 4.54% in September 2015 compared with record low level of (-) 4.95% touched in August 2015. An increase in WPI inflation was mainly driven by higher inflation for food articles and products in September 2015. However, the WPI inflation continued to be in the negative zone for the eleventh straight month in September 2015. As per the revised data, the inflation figure for July 2015 was scaled down marginally to (-) 4.1% from (-) 4% reported provisionally.

Inflation of primary articles increased to (-) 2.1% from (-) 3.7%, while that for manufactured products also rose to (-) 1.7% in September 2015 from (-) 1.9% in August 2015. The inflation of fuel items plunged to (-) 17.7% in September 2015 from (-) 16.5% in August 2015.

As per major commodity group-wise, inflation eased of fruits, egg, fish, poultry chicken, fodder, metallic minerals, crude petroleum, mineral oils, dairy products, textiles, wood products, rubber and plastic products, cement in September 2015. On the other hand, inflation increased for food grains, vegetables, spices, raw cotton, oilseeds, flowers, electricity, sugar, edible oils, tea, iron, steel, gold and ornament, and motor cycles in September 2015.

Inflation of food items (food articles and food products) increased to 0.2% in September 2015 from (-) 1.5% in August 2015. Meanwhile, inflation of non-food items (all commodities excluding food items) further dipped to (-) 6.6% in September 2015 from (-) 6.4% in August 2015.

Core inflation (manufactured products excluding foods products) was flat at (-) 1.9% in September 2015.

The contribution of primary articles to the overall inflation, at (-) 4.54%, was (-) 59 basis points (bps) in September 2015 compared with (-) 105 bps in August 2015. The contribution of manufactured products was (-) 95 bps compared with (-) 105 bps, while that of fuel product group was (-) 305 bps against (-) 283 bps in August 2015.

The contribution of food items (food articles and food products) to inflation stood at 07 bps in (-) 4.54% in September 2015 compared with (-) 44 bps to (-) 4.95% in August 2015. Meanwhile, the contribution of non-food items (all commodities excluding food items) was (-) 463 bps in September 2015 compared with (-) 450 bps in August 2015.

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