India’s WPI inflation accelerates to 4-year high at 5.77% in June

Continuing rising trend for third straight month, India’s Wholesale price index (WPI) inflation accelerated to 5.77% in the month of June 2018, as compared to 4.43% in May and 0.90% during the corresponding month of the previous year. The inflation hit a four-year high, mainly due to rise in prices of fuel, food and manufactured products. As per the data of Ministry of Commerce & Industry, WPI for All Commodities (Base: 2011-12=100) for the month of June, 2018 rose 1.1% to 119.2 (provisional) from 117.9 (provisional) for the previous month. Build up inflation rate in the financial year so far was 2.49% compared to a build up rate of (-) 0.44% in the corresponding period of the previous year. Besides, April WPI has been revised upward to 3.62% from 3.18% earlier.

Component wise, primary articles index having weight of 22.62% surged 2.0% to 133.2 (provisional) from 130.6 (provisional) for the previous month. Among the primary articles, the index for Food Articles group increased by 1.1% to 141.7 (provisional) from 140.1 (provisional) for the previous month, the index for Non-Food Articles group rose 2.9% to 122.5 (provisional) from 119.1 (provisional) for the previous month, the index for Minerals group inched up by 1.4% to 140.2 (provisional) from 138.3 (provisional) for the previous month and the index for Crude Petroleum & Natural Gas group jumped 8.1% to 95.2 (provisional) from 88.1 (provisional) for the previous month.

Fuel & Power index, having weight of 13.15%, jumped 3.0% to 104.1 (provisional) from 101.1 (provisional) for the previous month, on the back of rise in prices of mineral oils and electricity.

Manufactured Products constituting the major portion of the index with weight of 64.23% inched up by 0.4% to 117.3 (provisional) from 116.8 (provisional) for the previous month. Among the items in the group, the index for Manufacture of Food Products group surged 1.0% to 128.5 (provisional) from 127.2 (provisional) for the previous, the index for Manufacture of Beverages group increased 0.3% to 119.9 (provisional) from 119.5 (provisional) for the previous month, the index for Manufacture of Tobacco Products group inched up by 0.4% to 150.3 (provisional) from 149.7 (provisional) for the previous month, the index for Manufacture of Textiles group rose 0.3% to 115.9 (provisional) from 115.5 (provisional) for the previous month, the index for Manufacture of Leather and Related Products moves up by 0.2% to 121.9 (provisional) from 121.7 (provisional) for the previous month, the index for Manufacture of Chemicals and Chemical Products group rose by 0.6% to 118.0 (provisional) from 117.3 (provisional) for the previous month and the index for Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products group moves up by 0.2% to 121.9 (provisional) from 121.6 (provisional) for the previous month.

The index for Manufacture of Rubber and Plastics Products group increased by 0.5% to 109.0 (provisional) from 108.5 (provisional) for the previous month, the index for Manufacture of Basic Metals group rose 0.7% to 113.0 (provisional) from 112.2 (provisional) for the previous month, the index for Manufacture of Fabricated Metal Products, Except Machinery and Equipment group surged 1.2% to 114.0 (provisional) from 112.7 (provisional) for the previous month, the index for Manufacture of Electrical Equipment group inched up by 0.3% to 111.6 (provisional) from 111.3 (provisional) for the previous month, the index for Manufacture of Machinery and Equipment group increased by 0.4% to 110.3 (provisional) from 109.9 (provisional) for the previous month, the index for Manufacture of Motor Vehicles, Trailers and Semi-Trailers group rose 0.2% to 111.9 (provisional) from 111.7 (provisional) for the previous month, the index for Manufacture of Furniture group jumped 1.9% to 127.5 (provisional) from 125.1 (provisional) for the previous month.

On the other hand, the index for Manufacture of Wearing Apparel group slipped 1.3% to 139.2 (provisional) from 141.0 (provisional) for the previous month, the index for Manufacture of Wood and of Products of Wood and Cork group declined by 0.2% to 133.1(provisional) from 133.3 (provisional) for the previous month, the index for Manufacture of Paper and Paper Products group decreased by 0.2% to 120.7 (provisional) from 121.0 (provisional) for the previous month, the index for Printing and Reproduction of Recorded Media group dropped 0.1% to 146.4 (provisional) from 146.6 (provisional) for the previous month, the index for Manufacture of Other Non-Metallic Mineral Products group declined 0.4% to 115.2 (provisional) from 115.7 (provisional) for the previous month and the index for Manufacture of Computer, Electronic and Optical Products group was down by 0.3% to 111.3 (provisional) from 111.6 (provisional) for the previous month.