WPI Inflation rises to 2.93% in February

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 0.07% in December 2018 to 1.84% in January 2019.

Mar 14, 2019 06:03 IST India Infoline News Service

India’s wholesale price inflation (WPI) surged to 2.93% in February from 2.76% in January, data released by the commerce and industry ministry on Thursday showed.

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 0.07% in December 2018 to 1.84% in January 2019.

The annual rate of inflation, based on monthly WPI, stood at 2.76% (provisional) for the month of January 2019 (over January 2018) as compared to 3.80% (provisional) for the previous month and 3.02% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.49% compared to a build-up rate of 2.47% in the corresponding period of the previous year, the Ministry of Commerce & Industry said.

Primary Articles (Weight 22.62%)
The index for this major group declined by 0.1% to 134.5 (provisional) from 134.7 (provisional) for the previous month.

The index for ‘Food Articles’ group rose by 0.1% to 144.1 (provisional) from 144 (provisional) for the previous month due to higher price of betel leaves (13%), maize and fish-marine (6% each), ragi (5%), bajra and egg (4% each), coffee, arhar and barley (3% each), moong and masur (2% each) and wheat, pork, poultry chicken, jowar and gram (1% each). However, the price of peas/chawali (11%), tea (6%), fruits & vegetables (2%) and rajma (1%) declined.

The index for ‘Non-Food Articles’ group rose by 0.8% to 125.5 (provisional) from 124.5 (provisional) for the previous month due to higher price of copra (coconut) (6%), soyabean, raw jute and raw silk (5% each), raw rubber and floriculture (3% each) and fodder, gingelly seed, sunflower, skins (raw), hides (raw), linseed and groundnut seed (1% each). However, the price of raw cotton (3%), castor seed and guar seed (2% each) and rape & mustard seed (1%) declined.

The index for ‘Minerals’ group rose by 7.8% to 151.4 (provisional) from 140.4 (provisional) for the previous month due to higher price of zinc concentrate (44%), sillimanite (19%), copper concentrate (16%), limestone (3%) and lead concentrate (1%). However, the price of garnet (15%), manganese ore (3%) and iron ore (2%) declined.

The index for 'Crude Petroleum & Natural Gas' group declined by 9.2% to 83.3 (provisional) from 91.7 (provisional) for the previous month due to a lower price of crude petroleum (14%). However, the price of natural gas (3%) moved up.

Fuel & Power (Weight 13.15%)
The index for this major group declined by 4.1% to 99.3 (provisional) from 103.5 (provisional) for the previous month.

Manufactured products (Weight 64.23%)
The index for this major group declined by 0.3% to 117.9 (provisional) from 118.3 (provisional) for the previous month.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 0.2% to 113 (provisional) from 112.8 (provisional) for the previous month due to higher price of engine (3%), seat for motor vehicles and chassis of different vehicle types (2% each) and headlamp, gearbox & parts and radiators & coolers (1% each). However, the price of axles of motor vehicles (4%), crankshaft (3%), minibus/bus (2%) and brake pad/brake liner/brake block/brake rubber, [others], chain, shafts of all kinds and release valve (1% each) declined.

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