WPI inflation climbs up to 3.59% in October

Diminishing hopes of a rate cut in the Reserve Bank of India's monetary policy review next month, India's inflation on wholesale level picked up in the month of October due to increase in prices of food and fuel products. According to the latest data released by the government, the wholesale price inflation (WPI) climbed to 3.59% in October 2017 from 2.60% in September 2017 and 1.27% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.03% compared to a build up rate of 3.53% in the corresponding period of the previous year.

Component wise, primary articles index, having weight of 22.62%, was up by 2% to 133.4 (provisional) from 130.8 (provisional) for the previous month. Among the primary articles, the index for 'Food Articles' group rose by 2.2 percent to 148.0 (provisional) from 144.8 (provisional) for the previous month, the index for 'Minerals' group rose by 1.1% to 120.8 (provisional) from 119.5 (provisional) for the previous month and the index for 'Crude Petroleum & Natural Gas' group increased by 8.6% to 69.8 (provisional) from 64.3 (provisional) for the previous month. On the other hand, the index for 'Non-Food Articles' group declined by 0.9% to 119.2 (provisional) from 120.3 (provisional) for the previous month.

Fuel & Power index having weight of 13.15%, moved up by 3.1% to 93.5 (provisional) from 90.7 (provisional) for the previous month, as index of Mineral Oils and Electricity surged.

Manufactured Products constituting the major portion of the index with weight of 64.23% increased by 0.3% to 113.7 (provisional) from 113.4 (provisional) for the previous month. The index for 'Manufacture of Food Products' group inched up by 0.1% to 128.3 (provisional) from 128.2 (provisional) for the previous month, the index for 'Manufacture of Wearing Apparel' group increased by 0.4% to 137.1 (provisional) from 136.6 (provisional) for the previous month, the index for 'Manufacture of Paper and Paper Products' group rose by 0.3% to 119.6 (provisional) from 119.3 (provisional) for the previous month, the index for 'Manufacture of Chemicals and Chemical Products' group inched up by 0.4% to 111.7 (provisional) from 111.3 (provisional) for the previous month, the index for 'Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products' group rose by 0.5% to 122.1 (provisional) from 121.5 (provisional) for the previous month, the index for 'Manufacture of Rubber and Plastics Products' group rose by 0.7% to 107.6 (provisional) from 106.8 (provisional) for the previous month and the index for 'Manufacture of Basic Metals' group surged by 0.3% to 100.7 (provisional) from 100.4 (provisional) for the previous month.

The index for 'Manufacture of Fabricated Metal Products, Except Machinery and Equipment' group rose by 0.3% to 108.8 (provisional) from 108.5 (provisional) for the previous month, the index for 'Manufacture of Computer, Electronic and Optical Products' group jumped 2.4% to 111.8 (provisional) from 109.2 (provisional) for the previous month, the index for 'Manufacture of Machinery and Equipment' group increased by 0.8% to 109.1 (provisional) from 108.2 (provisional) for the previous month, the index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group rose by 0.1% to 110.6 (provisional) from 110.5 (provisional) for the previous month, the index for 'Manufacture of Other Transport Equipment' group rose by 0.2% to 109.8 (provisional) from 109.6 (provisional) for the previous month, the index for 'Manufacture of Furniture' group surged 3.7% to 124.6 (provisional) from 120.1 (provisional) for the previous month and the index for 'Other Manufacturing' group was up by 1.2% to 106.6 (provisional) from 105.3 (provisional) for the previous month.

On the other hand, the index for 'Manufacture of Beverages' group dropped 0.9% to 119 (provisional) from 120.1 (provisional) for the previous month, the index for 'Manufacture of Tobacco Products' group slipped 1.3% to 148.9 (provisional) from 150.9 (provisional) for the previous month, the index for 'Manufacture of Textiles' group declined by 0.2% to 113.2 (provisional) from 113.4 (provisional) for the previous month, the index for 'Manufacture of Leather and Related Products' group decreased by 0.1% to 119.1 (provisional) from 119.2 (provisional) for the previous month, the index for 'Manufacture of Wood and of Products of Wood and Cork ' group dropped 0.1% to 132.3 (provisional) from 132.4 (provisional) for the previous month, the index for 'Printing and Reproduction of Recorded Media ' group declined by 1% to 143.1 (provisional) from 144.6 (provisional) for the previous month and the index for 'Manufacture of other Non-Metallic Mineral Products' group was down by 0.1% to 111.8 (provisional) from 111.9 (provisional) for the previous month.