WPI and CPI are in line as both the indicators have eased in September 2021.
WPI stood at 1.32% in September last year. The Ministry of Commerce & Industry said that the high rate of inflation in September 2021 is primarily due to the rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared the corresponding month of the previous year.
Here's how major groups of WPI performed in September 2021:
1. Primary Articles (weight 22.62%):
The index for this major group declined by (-0.58%) to 154.9 (provisional) in September, 2021 from 155.8 (provisional) for the month of August, 2021. Prices of Crude Petroleum & Natural Gas (-4.06%), Minerals (-2.34%) Food Articles (-0.25%) andNon-food Articles (-0.31%) declined in September, 2021 as compared to August, 2021.
2. Fuel & Power (weight 13.15%):
The index for this major group declined by (-1.12%) to 114.7 (provisional) in September, 2021 from 116.0 (provisional) for the month of August, 2021. Prices of Mineral Oils (-1.75%) declined in September 2021 as compared to August 2021. Prices of coal and electricity remain unchanged.
3. Manufactured Products (weight 64.23%):
The index for this major group increased by (0.60%) to 133.8 (provisional) in September 2021 from 133.0 (provisional) for August, 2021. Out of the 22 NIC two-digit groups for Manufactured Products, 17 groups have witnessed an increase in prices; 4 groups have witnessed a decrease and for one group the prices remained unchanged in September 2021 as compared to August 2021.
The increase in prices is mainly contributed by the manufacture of basic metals; food products; chemicals and chemical products; machinery and equipment; motor vehicles, trailers, semi-trailers; and fabricated metals. Some of the groups that have witnessed a decrease in prices are the manufacture of electrical equipment; computer, electronic and optical products; printing and reproduction of recorded media, and beverages in September 2021 as compared to August 2021.
WPI food index (weight 24.38%):
The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from Manufactured Products group has increased from 159.6 in August 2021 to 159.8 in September 2021. The rate of inflation based on the WPI Food Index decreased from 3.43% in August 2021 to 1.14% in September 2021.
For July 2021, the final WPI and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 135.0 and 11.57 % respectively.