Core WPI inflation plunges to (-) 1.6% in October 2019The Wholesale Price Index (WPI)-based inflation, base year 2011-12, dipped further down to 40-months low of 0.2% in October 2019 from 0.3% in September 2019. The WPI based inflation has been moderating consistently for last six straight months from 3.2% in April 2019.
Among the three major sub-groups, the inflation for primary articles increased, while inflation for fuel and power and manufactured products groups further dipped in to sub-zero level contributing to the fall in overall WPI inflation in October 2019. The core inflation (manufactured products excluding foods products) slipped further down into sub-zero level to (-) 1.6% in October 2019.
The WPI inflation is revised slightly upwards to 1.2% for July 2019 similar to 1.1% reported to at provisional level.
As per major commodity group-wise, inflation dipped for mineral oils, basic metals, metallic minerals, crude petroleum & natural gas, fruits, chemicals and chemical products, machinery and equipment, textiles, pharmaceuticals, medicinal chemical and botanical products, oil seeds, other non-metallic mineral products, paper and paper products, fabricated metal products, except machinery and equipment, computer, electronic and optical products, cereals, beverages, fibres, furniture, other minerals, pulses, other non-food articles, wearing apparel etc. On the other hand, inflation of vegetables, food products, motor vehicles, trailers and semi-trailers, electricity, floriculture, printing and reproduction of recorded media, other manufacturing, condiments & spices, electrical equipment, other food articles, tobacco products etc increased in October 2019.
Inflation of primary articles increased to 6.4% in October 2019 from 5.5% in September 2019. The inflation for fuel and power group inflation dipped further below sub-zero level to (-) 8.3% and the manufactured products inflation to (-) 0.8% in October 2019.
Inflation of food items (food articles and food products) increased to 39-month high of 7.6% in October 2019 from 6.0% in September 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) dipped to (-) 2.8% in October 2019 from (-) 1.9% in September 2019.
The contribution of primary articles to the overall inflation of 0.16% increased to 163 basis points (bps) in October 2019, from contribution of 140 bps to 0.33% in September 2019. The contribution of fuel product group further declined to (-) 99 bps against (-) 83 bps in September 2019, while that of manufactured products fell to (-) 53 bps in October 2019 from (-) 27 bps in September 2019.
The contribution of food items (food articles and food products) to inflation increased to 214 bps to 0.16% in October 2019 compared with 167 bps to 0.33% in September 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) dipped to (-) 200 bps in October 2019 from (-) 134 bps in September 2019.
The WPI inflation fell to 1.5% in April-October FY2020 against 5.0% in April-October FY2019. The primary articles inflation moved up to 6.2% in April-October FY2020 from 2.6% in April-October FY2019, while fuel products inflation tumbled to (-) 2.8% from 15.5%. The inflation for manufactured products dipped to 0.5% in April-October FY2020 from 4.1% in April-October FY2019.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)