WPI inflation eases for third straight month; softens to 2.48% in February

Continuing its easing trend for the third straight month, India’s inflation on wholesale level softened in the month of February, with a sustained dip in food articles prices. The fall in non-food articles prices also supported the wholesale price inflation (WPI) to come in line with the lower retail inflation. According to the latest data released by the government, WPI stood at 2.48% (provisional) in February as against 2.84% (provisional) for the previous month and 5.51% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.30% compared to a build up rate of 4.92% in the corresponding period of the previous year.

Component wise, primary articles index having weight of 22.62%, dropped 1.3% to 128.0 (provisional) in February from 129.7 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group declined by 2.0% to 137.8 (provisional) from 140.6 (provisional) for the previous month and the index for ‘Non-Food Articles’ group was down by 0.1% to 120.6 (provisional) from 120.7 (provisional) for the previous month. On the flip side, the index for ‘Minerals’ group rose 0.2% to 122.2 (provisional) from 121.9 (provisional) for the previous month and the index for ‘Crude Petroleum & Natural Gas’ group was up by 2.9% to 80.6 (provisional) from 78.3 (provisional) for the previous month.

Fuel & Power index having weight of 13.15%, rose 1.2% to 98.1 (provisional) from 96.9 (provisional) for the previous month, on the back of rise in Coal and Mineral Oils prices.

Manufactured Products constituting the major portion of the index with weight of 64.23% increased marginally by 0.4% to 115.2 (provisional) from 114.7 (provisional) for the previous month. The index for ‘Manufacture of Tobacco Products’ group rose by 0.9% to 152.7 (provisional) from 151.3 (provisional) for the previous month, the index for ‘Manufacture of Textiles’ group surged by 0.6% to 113.7 (provisional) from 113.0 (provisional) for the previous month, the index for ‘Manufacture of Wearing Apparel’ group was up by 0.4% to 139.0 (provisional) from 138.5 (provisional) for the previous month, the index for ‘Manufacture of Leather and Related Products’ group increased by 0.7% to 121.6 (provisional) from 120.7 (provisional) for the previous month and the index for ‘Manufacture of Wood and of  Products of Wood and Cork ‘ group rose by 0.1% to 130.9 (provisional) from 130.8 (provisional) for the previous month.

Besides, the index for ‘Manufacture of Chemicals and Chemical Products’ group moved up by 1.1% to 115.0 (provisional) from 113.8 (provisional) for the previous month, the index for ‘Manufacture of Other Non-Metallic Mineral Products’ group rose 0.4% to 114.4 (provisional) from 114.0 (provisional) for the previous month, the index for ‘Manufacture of Basic Metals’ group surged 2.0% to 107.9 (provisional) from 105.8 (provisional) for the previous month, the index for ‘Manufacture of Machinery and Equipment’ group increased by 1.5% to 109.7 (provisional) from 108.1 (provisional) for the previous month, the index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group was up by 0.4% to 111.1 (provisional) from 110.7 (provisional) for the previous month, the index for ‘Manufacture of Other Transport Equipment’ group rose by 0.3% to 112.0 (provisional) from 111.7 (provisional) for the previous month and the index for ‘Other Manufacturing’ group soared by 2.5% to 106.8 (provisional) from 104.2 (provisional) for the previous month.

On the flip side, the index for ‘Manufacture of Food Products’ group declined by 0.3% to 126.4 (provisional) from 126.8 (provisional) for the previous month, the index for ‘Manufacture of Beverages’ group decreased by 0.5% to 119.3 (provisional) from 119.9 (provisional) for the previous month, the index for ‘Manufacture of Paper and Paper Products’ group dropped by 1.2% to 120.0 (provisional) from 121.4 (provisional) for the previous month, the index for ‘Printing and Reproduction of Recorded Media ‘ group slipped by 0.8% to 143.5 (provisional) from 144.6 (provisional) for the previous month and the index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group declined by 0.8% to 120.7 (provisional) from 121.7 (provisional) for the previous month.

Further, the index for ‘Manufacture of Rubber and Plastics Products’ group decreased by 0.5% to 107.3 (provisional) from 107.8 (provisional) for the previous month, the index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group was down by 0.1% to 111.8 (provisional) from 111.9 (provisional) for the previous month, the index for ‘Manufacture of Computer, Electronic and Optical Products’ group fell by 0.3% to 110.7 (provisional) from 111.0 (provisional) for the previous month and the index for ‘Manufacture of Electrical Equipment’ group was down by 0.6% to 109.4 (provisional) from 110.1 (provisional) for the previous month.