The annual rate of inflation, based on the monthly Wholesale Price Index (WPI), fell to 3.80% (provisional) for the month of December 2018 (over December 2017) as compared to 4.64% (provisional) for the previous month and 3.58% during the corresponding month of the previous year.
Build up inflation rate in the financial year so far was 3.27% compared to a build-up rate of 2.21% in the corresponding period of the previous year, as per government data.
The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Products’ from Manufactured Products group increased from -1.96% in November 2018 to 0.07% in December 2018, as per Commerce and Industry Ministry data.
Primary Articles (Weight 22.62%)
The index for this major group declined 1.8% to 134.7 (provisional) from 137.2 (provisional) in the previous month.
The index for ‘Food Articles’ group declined 1.4% to 144 (provisional) from 146.1 (provisional) in the previous month due to lower price of fruits & vegetables (8%), peas/chawali (7%), condiments & spices (2%), and paddy (1%).
The index for ‘Non-Food Articles’ group declined 0.1% to 124.5 (provisional) from 124.6 (provisional) in the previous month due to lower price of guar seed (6%), raw cotton and castor seed (3% each), groundnut seed (2%), and raw rubber, rape & mustard seed, and raw silk (1% each).
The index for ‘Minerals’ group rose 7.7% to 140.4 (provisional) from 130.4 (provisional) in the previous month due to higher price of garnet (28%), copper concentrate (21%), manganese ore (9%), iron ore, phosphorite, and chromite (3% each), and bauxite (1%).
However, the price of zinc concentrate (30%) and sillimanite (4%) declined.
The index for 'Crude Petroleum & Natural Gas' group declined 11.9% to 91.7 (provisional) from 104.1 (provisional) in the previous month due to the lower price of crude petroleum (16%).
Fuel & Power (Weight 13.15%)
The index for this major group declined 5.9% to 103.5 (provisional) from 110.0 (provisional) in the previous month.
The index for ‘Mineral Oils’ group declined 10.2% to 94.7 (provisional) from 105.5 (provisional) for the previous month due to lower price of naphtha (21%), furnace oil (16%), LPG (13%), ATF (12%), petrol and bitumen (9% each), HSD (8%), petroleum coke (7%), and kerosene (3%).
Manufactured Products (Weight 64.23%)
The index for this major group declined 0.4% to 118.3 (provisional) from 118.8 (provisional) in the previous month.