June WPI inflation at 0.90%, lowest level since July 2016

Coming in line with the decline in retail inflation, India's annual rate of inflation based on wholesale prices too eased in the month of June to record low level since July 2016, on account of easing manufactured products and fuel prices. According to the data released by the Ministry of Commerce & Industry, the country’s WPI in the month of June 2017 softened to 0.90% as compared to 2.17% in the previous month and (-) 0.09% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was (-) 0.44% compared to a build up rate of 3.71% in the corresponding period of the previous year.

Component wise, primary articles index, having weight of 22.62%, witnessed a growth of 0.3% to 126.9 (provisional) from 126.5 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group increased by 0.9% to 139 (provisional) from 137.7 (provisional) for the previous month and the index for ‘Minerals’ group rose by 1.3% to 116.3 (provisional) from 114.8 (provisional) for the previous month, while the index for ‘Non-Food Articles’ group decreased by 1.7 % to 117.8 (provisional) from 119.8 (provisional) for the previous month and the index for ‘Crude Petroleum & Natural Gas’ group declined by 2.4% to 69.4 (provisional) from 71.1 (provisional) for the previous month.

Fuel & Power index with weight of 13.15% declined by 1.2% to 89.7 (provisional) from 90.8 (provisional) for the previous month, with drop in index of Mineral Oils and Electricity.

Manufactured Products constituting the major portion of the index with weight of 64.23% declined by 0.1% to 112.5 (provisional) from 112.6 (provisional) for the previous month. The index for ‘Manufacture of Food Products’ group decreased by 0.4% to 126.7 (provisional) from 127.2 (provisional) for the previous month, the index for ‘Manufacture of Wearing Apparel’ group declined by 0.2% to 133.2 (provisional) from 133.5 (provisional) for the previous month, the index for ‘Manufacture of Wood and of Products of Wood and Cork’ group declined by 0.1% to 130.5 (provisional) from 130.6 (provisional) for the previous month, the index for ‘Manufacture of Paper and Paper Products’ group down by 0.6% to 115.7 (provisional) from 116.4 (provisional) for the previous month, The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.1% to 111.6 (provisional) from 111.7 (provisional) for the previous month, the index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group fell 0.5% to 120.2 (provisional) from 120.8 (provisional) for the previous month.

The index for ‘Manufacture of Rubber and Plastics Products’ group decreased by 0.1% to 108.5 (provisional) from 108.6 (provisional) for the previous month, the index for ‘Manufacture of Basic Metals’ group declined by 0.1% to 96.7 (provisional) from 96.8 (provisional) for the previous month, the index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group declined by 0.1% to 108 (provisional) from 108.1 (provisional) for the previous month, the index for ‘Manufacture of Computer, Electronic and Optical Products’ group down by 0.5% to 108.5 (provisional) from 109.1 (provisional) for the previous month, the index for ‘Manufacture of Machinery and Equipment’ group declined by 0.5% to 107.8 (provisional) from 108.3 (provisional) for the previous month and the index for ‘Other Manufacturing’ group declined by 3.8% to 110.3 (provisional) from 114.6 (provisional) for the previous month.

On the other hand, the index for ‘Manufacture of Beverages’ group increased by 0.1% to 117.6 (provisional) from 117.5 (provisional) for the previous month, the index for ‘Manufacture of Tobacco Products’ group rose by 1% to 144.3 (provisional) from 142.9 (provisional) for the previous month, The index for ‘Manufacture of Textiles’ group rose by 0.1% to 113.7 (provisional) from 113.6 (provisional) for the previous month, the index for ‘Manufacture of Leather and Related Products’ group rose by 0.3% to 119.9 (provisional) from 119.5 (provisional) for the previous month, the index for ‘Printing and Reproduction of Recorded Media ‘ group rose by 0.5% to 142.4 (provisional) from 141.7 (provisional) for the previous month.

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group rose by 0.8% to 112.3 (provisional) from 111.4 (provisional) for the previous month, the index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 0.3% to 111.6 (provisional) from 111.3 (provisional) for the previous month, the index for ‘Manufacture of Other Transport Equipment’ group increased by 0.6% to 109.7 (provisional) from 109 (provisional) for the previous month and the index for ‘Manufacture of Furniture’ group was up by 1.8% to 116.2 (provisional) from 114.2 (provisional) for the previous month.