WPI at -4.54% in Sept extends the deflationary trend for 11th month in a row

Continuing the deflationary trend for the eleventh straight month, the wholesale price index (WPI) came in at -4.54 percent (provisional) for the month of September, 2015 (over September, 2014) as compared to -4.95% (provisional) for the previous month and 2.38% during the corresponding month of the previous year. On a month-on-month basis the annual rate of inflation has been in the negative territory since October last year. This time the contraction was mainly led by lower fuel and vegetable prices. Meanwhile, the build up inflation rate in the financial year so far was 0.28% compared to a build up rate of 2.61% in the corresponding period of the previous year.

The index of Primary Articles having weight of 20.12% in the overall WPI index, rose by 0.4 percent to 252.4 (provisional) from 251.5 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group rose by 0.6 percent to 264.0 from 262.3 for the previous month. The index for 'Non-Food Articles'  group rose by 1.3 percent to 220.2 from 217.4 for the previous month and the index for ‘Minerals’ group declined by 4.3 percent to 234.1(provisional) from 244.6 (provisional) for the previous month.

Fuel & Power index having weight of 14.91%, declined by 1.7 percent to 175.6 (provisional) from 178.7 (provisional)  for the previous month.

Manufactured Products constituting the major portion of the index with weightage of 64.97% rose by 0.1 percent to 153.3 (provisional) from 153.1 (provisional) for the previous month. Among the manufactured products, the index for 'Food Products' group rose by 0.8 percent to 173.0 from 171.7 for the previous month. The index for 'Paper & Paper Products' group rose by 0.1 percent to 154.9 from 154.7, the index for 'Leather & Leather Products' group rose by 0.3 percent to 145.4 from 144.9, the index for 'Non-Metallic Mineral Products' group rose by 0.8 percent to 177.0  from 175.6 , the index for 'Basic Metals, Alloys & Metal Products' group rose by 0.5 percent to 154.9 from 154.1 and the index for 'Transport, Equipment & Parts' group rose by 0.1 percent to 137.8 (provisional) from 137.7 (provisional) for the previous month.

On the other hand, the index for 'Beverages, Tobacco & Tobacco Products' group declined by 0.1 percent to 206.2 (provisional) from 206.4 (provisional), the index for 'Textiles' group declined by 0.4 percent to 140.1 from 140.6 , the index for 'Wood & Wood Products' group declined by 2.2 percent to 194.2 from 198.5 , the index for 'Rubber & Plastic Products' group declined by 0.5 percent to 148.0 from 148.7 , the index for 'Chemicals & Chemical Products' group declined by 0.3 percent to 150.8 (provisional) from 151.3 (provisional).

The final Wholesale Price Index for the month of July, 2015, stood at 177.6 as compared to 177.5 (provisional) and annual rate of inflation based on final index stood at -4.00 percent as compared to -4.05 percent (provisional) respectively.