WPI inflation remains in negative zone for the seventh month, stood at -2.36% in May

Deflationary trend continued for the seventh month in a row though some consolidation sign appeared with Wholesale Price Index (WPI) inflation coming at (-) 2.36% in May, compared to -2.65% (provisional) for the previous month mainly on the back of plunging oil and manufacturing goods prices, even as food prices increased. Inflation, as measured on the Wholesale Price Index (WPI), has been in the negative zone since November 2014. Build up inflation rate in the financial year so far was 0.91% compared to a build up rate of 0.94% in the corresponding period of the previous year.

Component wise, inflation in primary articles, having weight of 20.12% rose by 1.3% to 244.9 (provisional) from 241.8 (provisional) for the previous month. In primary articles the index for ‘Food Articles’ group rose by 0.5% to 253.9 (provisional) from 252.7 (provisional) for the previous month. The index for  ‘Non-Food Articles’ group rose by 5.1% to 213.9 (provisional) from 203.5 (provisional) for the previous month, while the index for ‘Minerals’ group rose by 0.4 percent to 247.7 (provisional) from 246.6 (provisional). Fuel & Power, the index for this major group having weight of 14.91% rose by 3.0% to 189.8 (provisional) from 184.2 (provisional) for the previous month.

Manufactured products index which has the highest weightage of 64.97%, witnessed 0.2 percent to 154.1 (provisional) from 153.8 (provisional) for the previous month. In manufactures products, the index for ‘Food Products’ group rose by 1.1 percent to 171.7 (provisional) from 169.8 (provisional), the index for ‘Beverages, Tobacco & Tobacco Products’ group declined by 0.2 percent to 203.0 (provisional) from 203.5 (provisional), the index for ‘Textiles’ group declined by 0.1 percent to 140.1(provisional) from 140.3 (provisional), the index for ‘Paper & Paper Products’ group declined by 0.2 percent to 152.8 (provisional) from 153.1 (provisional), the index for ‘Non-Metallic Mineral Products’ group declined by 0.4 percent to 176.9 (provisional) from 177.6 (provisional).

On the other hand, the index for ‘Wood & Wood Products’ group rose by 0.5 percent to 192.9 (provisional) from 192.0 (provisional), the index for ‘Leather & Leather Products’ group rose by 1.2 percent to 143.5 (provisional) from 141.8 (provisional), the index for ‘Rubber & Plastic Products’ group rose by 0.5 percent to 148.8 (provisional) from 148.1 (provisional), the index for ‘Chemicals & Chemical Products’ group rose by 0.1 percent to 150.9 (provisional) from 150.7 (provisional) and the index for ‘Transport, Equipment & Parts’ group rose by 0.1 percent to 137.6 (provisional) from 137.4 (provisional).

Meanwhile, for the month of March, 2015, the final Wholesale Price Index for ‘All Commodities’ and annual rate of inflation remained unchanged at its provisional level of 176.1 and -2.33 percent respectively.