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WPI Inflation dips to 22-month low of 2.45% in May 2019

Capital Market 

Core WPI eases to 1.2% in May 2019

The (WPI)-based inflation, base year 2011-12, declined to 22-month low of 2.5% in May 2019 from 3.1% in April 2019. The declined for primary articles, while the for fuel and group and manufactured products growth also dipped contributing to the fall in overall WPI inflation in May 2019. The (manufactured products excluding foods products) plunged to 1.2% in May 2019.

The WPI inflation is revised downwards to 3.1% for March 2019 from 3.2% reported earlier.

Inflation of primary declined from 57-months high of 6.5% in April 2019 to 6.2% in May 2019. However, the inflation for fuel and group inflation plunged to 31-months low of 1.0% and the manufactured products inflation also dipped to 31-month low of 1.3% in May 2019.

As per major commodity group-wise, inflation dipped for basic metals, mineral oils, electricity, vegetables, crude petroleum & natural gas, and chemical products, fabricated metal products, except and equipment, eggs, meat & fish, textiles, and plastics products, milk, cereals, pharmaceuticals, and botanical products, tobacco products, other manufacturing, and reproduction of recorded media, paper and paper products, motor vehicles, trailers and semi-trailers, furniture. On the other hand, inflation of food products, fruits, other non-metallic mineral products, and equipment, metallic minerals, pulses, other non-food articles, other transport equipment, condiments & spices, floriculture, wearing apparel, computer, etc increased in May 2019.

Inflation of (food and food products) rose to 5.1% in May 2019 from 4.9% in April 2019 level. Meanwhile, inflation of non-(all commodities excluding food items) declined to 1.5% in May 2019 from 2.4% in April 2019.

The contribution of primary to the overall inflation of 2.5% declined to 155 basis points (bps) in May 2019, from contribution of 164 bps to 3.1% in April 2019. The contribution of group declined to 11 bps against 43 bps in April 2019, while that of manufactured products eased to 81 bps in May 2019 from 110 bps in April 2019.

The contribution of (and food products) to inflation rose to 142 bps to 2.5% in May 2019 compared with 139 bps to 3.1% in April 2019. Meanwhile, the contribution of (all commodities excluding food items) declined to 105 bps in May 2019 from 174 bps in April 2019.

The WPI inflation fell to 2.8% in April-May FY2020 against 4.2% in April-May FY2019. The primary articles inflation moved up to 6.3% in April-May FY2020 from 3.2% in April-May FY2019, while fuel products inflation tumbled to 2.4% from 10.3%. The inflation for manufactured products dipped to 1.5% in April-May FY2020 from 3.6% in April-May FY2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 14 2019. 14:54 IST