February 2018 WPI inflation stands at 2.5%

The WPI inflation stands at 2.5% in February 2018 as compared to 2.8% in January 2018, 3.6% in December 2017, 4.02% in November 2017, 3.7% in October 2017 and 3.14% in September 2017. The decline in WPI inflation in the month of February 2018 is attributed to fall in the prices of food articles (0.88%), vegetables (15.86%), fruits (6.13%), eggs, meat & fish (-0.22%) and LPG (8.5%)

 

Driven by fall in the prices of food articles, vegetables, fruits, eggs, meat & fish and LPG, WPI inflation stands at 2.5% in February 2018 as compared to 2.8% in January 2018. The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of February, 2018 remained unchanged at its previous month level of 115.8 (Provisional).

Trend in WPI Inflation                                                                                                                                                                                    (Y-O-Y) %

Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

 

   WPI inflation in select commodities (Base year: 2011-12)

Commodity

WPI Inflation Y-o-Y % growth

Dec’17

Jan’18

Feb’18

1

All Commodities

3.58

2.84

2.48

2

Primary Articles

3.86

2.37

0.79

3

Food Articles

4.72

3.00

0.88

4

Cereals

-3.00

-1.98

-2.45

5

Vegetables

56.38

40.77

15.26

6

Non-food Articles

-0.34

-1.23

-2.66

7

 Fuel & Power

8.03

4.08

3.81

8

Petrol

8.94

1.21

2.52

9

Manufactured Products

2.79

2.78

3.04

10

Sugar

0.73

-5.70

-9.74

Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

Build up inflation rate in the financial year so far was 2.30% compared to a build up rate of 4.92% in the corresponding period of the previous year.

Build up in inflation from March in select food commodities                   (in %)

 Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

Manufacturing inflation stands at 3.04% (weight 64.23 %)

The WPI inflation for manufactured products grows at 3.04% for February 2018 as against 2.78% for January 2018.  The index for this major group rose by 0.4 % to 115.2 (provisional) from 114.7 (provisional) for the previous month..

 

Trend in WPI inflation in manufactured products                                                                                         (in %)    

Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

Food inflation stands at 0.88% (Weight 15.26%)

Food inflation stands at 0.88% in February 2018 as against 3% in January 2018. The index for ‘Food Articles’ group declined by 2.0 % to 137.8 (provisional) from 140.6 (provisional) for the previous month due to lower price of fruits & vegetables (9%), gram, tea and masur (4% each), rajma and bajra (3% each), egg, fish-marine, peas/chawali, jowar and urad (2% each) and wheat (1%).  However, the price of betel leaves (13%), ragi (3%) and arhar, maize, condiments & spices, coffee, moong, fish-inland, poultry chicken and paddy (1% each) moved up.

Non-food articles inflation stands at (-)2.66% (weight 4.12%)

Non-food articles inflation for the month of February 2018 stands at (-)2.66% as against (-)1.23% in January 2018. The index for ‘Non-Food Articles’ group declined by 0.1 % to 120.6 (provisional) from 120.7 (provisional) for the previous month due to lower price of floriculture (15%), niger seed (5%), raw cotton and linseed (3% each), raw rubber and skins (raw) (2% each) and cotton seed, raw silk, rape & mustard seed and copra (coconut) (1% each).  However, the price of soyabean (11%), hides (raw) (10%), mesta (8%), raw jute (5%), guar seed (4%), raw wool and fodder (2% each) and groundnut seed, castor seed, gingelly seed and sunflower (1% each) moved up.

Fuel & power inflation stands at 3.81% (weight 13.15%)

Fuel & power inflation for the month of February 2018 stands at 3.81% as against 4.08% in January 2018. The index for this major group rose by 1.2 % to 98.1 (provisional) from 96.9 (provisional) for the previous month. The index for ‘Coal’ group rose by 1.2 % to 122.6 (provisional) from 121.1 (provisional) for the previous month due to higher price of non-coking coal (2%). The index for ‘Mineral Oils’ group rose by 1.8 % to 89.8 (provisional) from 88.2 (provisional) for the previous month due to higher price of ATF (7%), kerosene and lube oils (4% each), furnace oil (3%), HSD and petrol (2% each) and petroleum coke (1%).  However, the price of bitumen and naphtha (2% each) declined.

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