WPI Inflation dips into sub-zero level in May 2020

Core WPI inflation plunges to (-) 3.9%, inflation for all three major groups in negative zone in May 2020

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, declined sharply into sub-zero level to 54-month low of (-) 3.2% in May 2020 from 0.4% in March 2020. The inflation for all the three major sub-groups - primary articles, fuel and power group and manufactured products group declined into sub-zero level contributing to the overall drop in inflation in May 2020. The core inflation (manufactured products excluding foods products) slipped further down to (-) 3.9% in May 2020.

The WPI inflation is revised downwards to 0.4% for May 2020 from 1.0% reported at provisional level.

 

Inflation of primary articles dipped to (-) 2.9% in May 2020 from (-) 0.8% in April 2020. The inflation for fuel and power group inflation slipped to (-) 19.8% from (-) 10.1% in April 2020, while manufactured products inflation fell to (-) 0.4% in May 2020 from 0.3% in March 2020. The figure for manufactured product index has not been released for April 2020.

Inflation of food items (food articles and food products) further eased to 2.3% in May 2020 from 3.6% in April 2020. Meanwhile, inflation of non-food items (all commodities excluding food items) plunged to (-) 5.4% in May 2020 from (-) 1.5% in March 2020.

The contribution of primary articles to the overall inflation of (-) 3.2% declined to (-) 43 basis points (bps) in May 2020, from contribution of (-) 21 bps in April 2020. The contribution of fuel product group further dipped to (-) 224 bps against (-) 113 bps in April 2020, while that of manufactured products declined to (-) 26 bps in May 2020 from 16 bps in March 2020.

The contribution of food items (food articles and food products) to inflation declined to 66 bps to (-) 3.2% in May 2020 compared with 103 bps in April 2020. Meanwhile, the contribution of non-food items (all commodities excluding food items) dipped to (-) 388 bps in May 2020 from (-) 105 bps in March 2020.

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