WPI inflation slows to 3.57% in September

India’s Wholesale Price Index (WPI) inflation eased to 3.57 percent month-on-month in September as food articles led by vegetables witnessed softening of prices. Meanwhile, for the month of July, 2016, the final Wholesale Price Index for ‘All Commodities’ stood at 184.2 as compared to 183.9 (provisional) and annual rate of inflation based on final index stood at 3.72 percent as compared to 3.55 percent (provisional) respectively as reported on 16.08.2016.

As per the data of Ministry of Commerce & Industry, the annual rate of inflation, based on monthly WPI, stood at 3.57% for the month of September, 2016 as compared to 3.74% (provisional) for the previous month and -4.59% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 4.28% compared to a build up rate of 0.23% in the corresponding period of the previous year.

Component wise, primary articles index, having weight of 20.12%, witnessed a drop of 1.9% to 263.9 (provisional) from 268.9 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group declined by 1.6 percent to 279.6 (provisional) from 284.2 (provisional) for the previous month, the index for ‘Non-Food Articles’ group declined by 2.5 percent to 230.3 (provisional) from 236.3 (provisional) for the previous month and the index for ‘Minerals’ group declined by 2.7 percent to  210.4 (provisional) from 216.3  (provisional) for the previous month.

Fuel & Power index having weight of 14.91% increased by 1.8% to 185.4 (provisional) from 182.2  (provisional) for the previous month due to higher price of furnace oil and petrol.

Manufactured Products index having weight of 64.97% increased by 0.3% to 157.1 (provisional) from 156.7 (provisional) for the previous month. Among the items in the group, the index for ‘Food Products’ group rose by 0.6 percent to 192.5 (provisional) from 191.3 (provisional) for the previous month, the index for ‘Wood & Wood Products’ group rose by 1.6 percent to 200.8 (provisional) from 197.6 (provisional) for the previous month, the index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.7 percent to 153.0 (provisional) from 151.9 (provisional) for the previous month, the index for ‘Textiles’ group rose by 0.1 percent to 142.2 (provisional) from 142.1 (provisional) for the previous month, the index for ‘Rubber & Plastic Products’ group rose by 0.1 percent to 147.8 (provisional) from 147.6 (provisional) for the previous month, the index for ‘Transport, Equipment & Parts’ group rose by 0.1 percent to 139.8 (provisional) from 139.7 (provisional) for the previous month, while the index for ‘Chemicals & Chemical Products’ group declined by 0.4 percent to 150.6 (provisional) from 151.2 (provisional) for the previous month, the index for ‘Leather & Leather Products’ group declined by 0.2 percent to 145.8 (provisional) from 146.1 (provisional) for the previous month, the index for ‘Paper & Paper Products’ group declined by 0.1 percent to 156.8 (provisional) from 157.0 (provisional) for the previous month, the index for ‘Non-Metallic Mineral Products’ group declined by 0.1 percent to 179.4 (provisional) from 179.5 (provisional) for the previous month.