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Informist, Monday, Oct. 14, 2024

 

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--India Sept WPI inflation rate 1.84% vs 1.31% Aug
--Informist poll estimated India Sept WPI inflation at 2.0%
--India Sept WPI food inflation 9.47% vs 3.26% Aug
--India Sept WPI primary articles inflation 6.59% vs 2.42% Aug
--India Sept WPI fuel and power inflation -4.05% vs -0.67% Aug
--India Sept WPI manufactured products inflation 1.00% vs 1.22% Aug
--India Sept WPI all commodity index up 0.1% on month
--India Sept WPI food index up 1.1% on month
--India Sept WPI primary articles index up 0.4% on month
--India Sept WPI fuel and power group index down 0.8% on month
--India Sept WPI manufactured products index up 0.1% on month
--India Sept WPI vegetable index up 2.4% on month
--India Sept WPI cereals index up 0.9% on month
--India Sept WPI edible oils index up 5.0% on month
--India Sept WPI basic metals index down 0.7% on month
--India Jul WPI inflation rate revised to 2.10% vs 2.04% provisional
--India Sept WPI core inflation rate 0.1% vs 0.8% Aug
 

 

 

NEW DELHI - India's wholesale inflation rate for September rose to 1.84% from August's four-month low of 1.31%, data released Monday by the commerce ministry showed, with an unfavourable base pushing prices higher on a year-on-year basis while an increase in food prices drove sequential momentum. WPI inflation was (-)0.07% in September 2023.

 

At 1.84%, the WPI inflation print for September is slightly lower than expected. According to a poll by Informist, wholesale inflation last month was seen rising to 2.0%. For July, the WPI inflation rate was revised slightly higher to 2.10% from the provisional print of 2.04%.

 

In September, overall wholesale price momentum was muted, with the all-commodity index up only 0.1% from August. However, the food index of the WPI surged 1.1% sequentially, driven by vegetables (up 2.4% on month), pulses (1.4%), and cereals (0.9%). Within vegetables, onions led the charge, with the price index for the vegetable up more than 25% from the previous month.

 

Meanwhile, the other two major groups--fuel and power and manufactured products--both posted month-on-month declines in their index. Manufactured products, which make up nearly two-thirds of the WPI, saw their inflation levels cool further in September to 1.00?ter easing somewhat in August from July's 17-month high of 1.58%. As a result, core WPI inflation--which excludes food and fuel components--fell further to 0.1% in September.

 

The wholesale inflation data for September comes hours before the statistics ministry releases retail inflation data. Scheduled to be released at 1730 IST on Monday, CPI inflation is expected to have jumped up to 5.1% in September from 3.65% in August, thanks to an unfavourable base effect, as per an Informist poll. However, this sharp increase in headline retail inflation is already baked into the Reserve Bank of India's forecasts and monetary policy, with Governor Shaktikanta Das saying last week that CPI inflation will be around 5% in September and October.

 

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

 

	Weight	September	Month-on-month change (in %)	Year-on-year change (in %)
				September	August
ALL COMMODITIES	100.00	154.6	0.1	1.84	1.31
PRIMARY ARTICLES	22.62	195.7	0.4	6.59	2.42
Food articles	15.26	210.9	0.9	11.53	3.11
Cereals	2.82	206.0	0.9	8.08	8.44
Pulses	0.64	237.5	1.4	12.99	18.57
Vegetables	1.87	310.4	2.4	48.73	(-)10.01
Potato	0.28	378.0	(-)4.1	78.13	77.96
Onion	0.16	486.2	25.4	78.82	65.75
Tomato	0.28	383.1	(-)0.7	74.53	(-)52.61
Fruits	1.60	209.3	0.8	12.17	16.69
Milk	4.44	185.7	(-)0.1	3.17	3.51
Eggs, meat, and fish	2.40	172.8	(-)0.2	(-)0.80	(-)0.69
Non-food articles	4.12	161.9	1.3	(-)1.64	(-)2.08
Oil seeds	1.12	183.6	3.3	(-)1.02	(-)5.38
Minerals	0.83	227.6	1.8	3.03	8.76
Iron ore	0.21	129.2	(-)4.0	20.86	23.71
Crude petroleum	1.95	123.5	(-)6.2	(-)16.78	(-)0.98
FUEL and POWER	13.15	146.9	(-)0.8	(-)4.05	(-)0.67
Coal	2.14	135.6	0.0	(-)0.0	(-)1.45
Liquefied petroleum gas	0.64	116.8	2.1	13.18	14.40
Petrol	1.60	151.1	(-)1.8	(-)7.47	(-)4.23
High speed diesel	3.10	165.1	(-)1.0	(-)5.33	(-)3.03
Electricity	3.06	135.8	1.34	(-)0.88	(-)0.81
MANUFACTURED PRODUCTS	64.23	141.8	0.1	1.00	1.22
Food products	9.12	169.2	1.6	5.49	3.61
Edible oils	2.64	157.7	5.0	10.51	1.83
Textiles	4.88	135.8	(-)0.5	1.12	1.79
Chemical, chemical products	6.47	136.4	(-)0.2	0.07	0.22
Non-metallic mineral products	3.20	130.4	0.5	(-)3.41	(-)3.85
Cement and lime	1.64	128.4	0.4	(-)6.55	(-)6.98
Basic metals	9.65	138.5	(-)0.7	(-)3.15	(-)0.78
Semi-finished steel	1.27	117.0	(-)0.7	(-)3.86	(-)2.40

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Siddharth Upasani

Edited by Vandana Hingorani

 

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