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Informist, Wednesday, Aug 14, 2024

 

--India Jul WPI manufactured products inflation 1.58% vs 1.43% Jun 
--India Jul WPI fuel and power inflation 1.72% vs 1.03% Jun 
--India Jul WPI primary articles inflation 3.08% vs 8.80% Jun 
--Informist poll estimated India Jul WPI inflation at 2.2% 
--India Jul WPI inflation rate 2.04% vs 3.36% Jun 

--India Jul WPI food inflation 3.55% vs 8.68% Jun 

--India Jul WPI all commodity index up 0.8% on month 

--India Jul WPI food index up 2.7% on month 

--India Jul WPI primary articles index up 3.1% on month 

--India Jul WPI fuel and power group index up 0.1% on month 

--India Jul WPI manufactured products index down 0.1% on month 

--India Jul WPI vegetable index up 22.2% on month 

--India Jul WPI cereals index up 0.7% on month 

--India Jul WPI edible oils index up 0.7% on month 

--India Jul WPI basic metals index down 1.4% on month 

--India May WPI inflation rate revised to 2.74% vs 2.61% provisional 

--India Jul WPI core inflation rate 1.2% vs 0.9% Jun 

 

NEW DELHI – India's annual inflation rate based on the Wholesale Price Index eased to 2.04% in July from 3.36% in June mainly on account of a statistical effect of a high base, data released today by the commerce and industry ministry showed. WPI inflation was (-)1.23% in July last year.

 

The WPI inflation print for July was lower than expected. According to a poll by Informist, WPI inflation for the month was seen at 2.2%. WPI inflation for May was revised higher to 2.74% from the provisional print of 2.61%.

 

The base effect was such that, had the overall index remained unchanged from the previous month, WPI inflation would have eased to 1.18% in July. The overall index rose 0.8% on month in July, led by a 2.7% increase in the food index.

 

Wholesale food inflation, on the other hand, fell to a nine-month low of 3.55% in July from a 22-month high of 8.68% in June because of the statistical effect of a high base. Food inflation was at 8.32% in July 2023.

 

Within the food index, vegetables rose 22.2% on month in July. Vegetable inflation, however, was at a nine-month low of (-)8.93% in July. Wholesale prices of tomato jumped 60.2% on month in July, while prices of potato and onion were up 14.7% and 24.6% on month, respectively.

 

Manufactured products inflation was at a 17-month-high of 1.58% in July. On a sequential basis, the manufactured products index fell 0.1% from June. Wholesale fuel and power inflation rose to a 16-month high of 1.72% in July from 1.03% in June.

 

Wholesale core inflation also rose to a 17-month high of 1.2% in July from 0.9% in June. This is the fifth consecutive month when WPI core inflation has risen. WPI core inflation had stayed in negative territory for 14 consecutive months till April.

 

"The near-term outlook for WPI inflation remains benign," Rahul Agrawal, senior economist at ICRA, said in a note. "Prices of a majority of food items have dipped on a sequential basis in August 2024 so far, amid a pick-up in the monsoon and a healthy progression in kharif sowing. This is likely to aid in containing the base effect-led uptick in the primary food articles inflation print in the ongoing month." ICRA expects WPI inflation to stay at around 2% in August.

 

The following table details the sequential and annual increase in the main components of the WPI:

 

	Weight	July	Month-on-month change (in %)	Year-on-year change (in %)
				July	June
ALL COMMODITIES	100.00	155.2	0.8	2.04	3.36
PRIMARY ARTICLES	22.62	197.6	3.1	3.08	8.80
Food articles	15.26	213.0	3.9	3.45	10.87
Cereals	2.82	203.0	0.7	8.96	9.27
Pulses	0.64	230.8	0.7	20.27	21.64
Vegetables	1.87	345.7	22.2	(-)8.93	38.76
Potato	0.28	390.0	14.7	76.23	66.37
Onion	0.16	347.9	24.6	88.77	93.35
Tomato	0.28	630.5	60.2	(-)39.58	57.82
Fruits	1.60	196.2	(-)2.3	15.62	10.14
Milk	4.44	186.0	0.9	4.55	3.37
Eggs, meat, and fish	2.40	173.7	(-)0.5	(-)1.59	(-)3.06
Non-food articles	4.12	157.2	0.9	(-)2.90	(-)1.95
Oil seeds	1.12	179.8	(-)0.1	(-)4.26	(-)3.33
Minerals	0.83	229.6	1.0	6.59	9.59
Iron ore	0.21	144.2	5.3	28.18	17.80
Crude petroleum	1.95	136.6	2.6	9.19	14.04
FUEL and POWER	13.15	147.9	0.1	1.72	1.03
Coal	2.14	135.6	(-)0.1	(-)1.45	(-)1.31
Liquefied petroleum gas	0.64	113.8	(-)1.6	6.06	1.49
Petrol	1.60	155.0	0.8	(-)0.64	(-)1.35
High speed diesel	3.10	167.4	0.8	(-)1.65	(-)1.78
Electricity	3.06	131.9	(-)2.7	(-)1.71	0.22
MANUFACTURED PRODUCTS	64.23	141.7	(-)0.1	1.58	1.43
Food products	9.12	165.9	0.2	3.75	4.28
Edible oils	2.64	149.2	0.7	1.02	2.21
Textiles	4.88	136.7	0.2	2.09	1.19
Chemical, chemical products	6.47	136.8	0.3	0.15	(-)1.09
Non-metallic mineral products	3.20	130.5	(-)0.8	(-)3.05	(-)2.38
Cement and lime	1.64	129.9	(-)1.4	(-)5.46	(-)4.15
Basic metals	9.65	141.1	(-)1.4	0.86	1.06
Semi-finished steel	1.27	119.2	(-)0.8	(-)2.45	(-)1.31

 

End

 

Reported by Shubham Rana

Edited by Namrata Rao and Manisha Baxla

 

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