Informist, Tuesday, Sep 17, 2024
--India Aug WPI inflation rate 1.31% vs 2.04% Jul
--Informist poll estimated India Aug WPI inflation at 1.8%
--India Aug WPI food inflation 3.26% vs 3.55% Jul
--India Aug WPI primary articles inflation 2.42% vs 3.08% Jul
--India Aug WPI fuel and power inflation -0.67% vs 1.72% Jul
--India Aug WPI manufactured products inflation 1.22% vs 1.58% Jul
--India Aug WPI food index down 1.1% on month
--India Aug WPI all commodity index down 0.5% on month
--India Aug WPI primary articles index down 1.4% on month
--India Aug WPI fuel and power group index up 0.1% on month
--India Aug WPI manufactured products index down 0.1% on month
--India Aug WPI vegetable index down 12.3% on month
--India Aug WPI cereals index up 0.6% on month
--India Aug WPI edible oils index up 0.7% on month
--India Aug WPI basic metals index down 1.1% on month
--India Jun WPI inflation rate revised to 3.43% vs 3.36% provisional
--India Aug WPI core inflation rate 0.8% vs 1.2% Jul
NEW DELHI - India's annual inflation rate based on the Wholesale Price Index eased to a four-month low of 1.31% in August from 2.04% in July, mainly because of a fall in food prices, data released today by the commerce and industry ministry showed. WPI inflation was (-)0.46% in August last year.
The WPI inflation print for August was lower than expected. According to a poll by Informist,
WPI inflation for the month was seen at 1.8%. WPI inflation for June was revised slightly higher to 3.43% from the provisional print of 3.36%.
The all commodities index fell 0.5% on month in August, led by a 1.1?cline in the food index.
Within food, the vegetable price index saw the largest fall in August, down 12.3% on month. The sequential decline in the vegetable index, was, in turn, led by a 38.8?ll in the tomato price index. Wholesale onion prices, on the other hand, rose 11.4% on month in August.
Apart from vegetables, wholesale prices of cereals, pulses, and fruits rose sequentially in August. Cereal prices were up 0.6% on month, while pulses prices rose 1.5% compared to July. Wholesale prices of fruits increased 5.8% on month in August.
Manufactured products inflation eased to 1.22% last month from a 17-month-high of 1.58% in July. On a sequential basis, too, the manufactured products index was down 0.1% from July.
Wholesale fuel and power inflation, which was at a 16-month high of 1.72% in July, turned disinflationary in August at (-)0.67%.
Wholesale core inflation eased to 0.8% in August from a 17-month high of 1.2% in July. This was the first time WPI core inflation declined after rising for five consecutive months. WPI core inflation had stayed in negative territory for 14 consecutive months till April.
"While prices of most food items have eased further on a month-on-month basis in September, an adverse base would push up the year-on-year inflation prints for the primary food articles category significantly in the ongoing month," Rahul Agrawal, senior economist at ICRA, said in a note. "This would exert upward pressure to the headline WPI inflation print for September." ICRA sees WPI inflation rising to around 2.0% in September.
The following table details the sequential and annual increase in the main components of the WPI:
| Weight | August | Month-on-month change (in %) |
Year-on-year change (in %) | ||
| August | July | ||||
| ALL COMMODITIES | 100.00 | 154.5 | (-)0.5 | 1.31 | 2.04 |
| PRIMARY ARTICLES | 22.62 | 194.9 | (-)1.4 | 2.42 | 3.08 |
| Food articles | 15.26 | 209.1 | (-)1.8 | 3.11 | 3.45 |
| Cereals | 2.82 | 204.2 | 0.6 | 8.44 | 8.96 |
| Pulses | 0.64 | 234.3 | 1.5 | 18.57 | 20.27 |
| Vegetables | 1.87 | 303.1 | (-)12.3 | (-)10.01 | (-)8.93 |
| Potato | 0.28 | 394.0 | 1.0 | 77.96 | 76.23 |
| Onion | 0.16 | 387.7 | 11.4 | 65.75 | 88.77 |
| Tomato | 0.28 | 385.7 | (-)38.8 | (-)52.61 | (-)39.58 |
| Fruits | 1.60 | 207.6 | 5.8 | 16.69 | 15.62 |
| Milk | 4.44 | 185.9 | (-)0.1 | 3.51 | 4.55 |
| Eggs, meat, and fish | 2.40 | 173.2 | (-)0.3 | (-)0.69 | (-)1.59 |
| Non-food articles | 4.12 | 159.8 | 1.7 | (-)2.08 | (-)2.90 |
| Oil seeds | 1.12 | 177.7 | (-)1.2 | (-)5.38 | (-)4.26 |
| Minerals | 0.83 | 223.5 | (-)2.7 | 8.76 | 6.59 |
| Iron ore | 0.21 | 134.6 | (-)6.7 | 23.71 | 28.18 |
| Crude petroleum | 1.95 | 131.6 | (-)3.7 | (-)0.98 | 9.19 |
| FUEL and POWER | 13.15 | 148.1 | 0.1 | (-)0.67 | 1.72 |
| Coal | 2.14 | 135.6 | 0.0 | (-)1.45 | (-)1.45 |
| Liquefied petroleum gas | 0.64 | 114.4 | 0.5 | 14.40 | 6.06 |
| Petrol | 1.60 | 153.9 | (-)0.7 | (-)4.23 | (-)0.64 |
| High speed diesel | 3.10 | 166.7 | (-)0.4 | (-)3.03 | (-)1.65 |
| Electricity | 3.06 | 134.0 | 1.6 | (-)0.81 | (-)1.71 |
| MANUFACTURED PRODUCTS | 64.23 | 141.6 | (-)0.1 | 1.22 | 1.58 |
| Food products | 9.12 | 166.6 | 0.4 | 3.61 | 3.75 |
| Edible oils | 2.64 | 150.2 | 0.7 | 1.83 | 1.02 |
| Textiles | 4.88 | 136.5 | (-)0.2 | 1.79 | 2.09 |
| Chemical, chemical products | 6.47 | 136.6 | (-)0.2 | 0.22 | 0.15 |
| Non-metallic mineral products | 3.20 | 129.8 | (-)0.5 | (-)3.85 | (-)3.05 |
| Cement and lime | 1.64 | 127.9 | (-)1.5 | (-)6.98 | (-)5.46 |
| Basic metals | 9.65 | 139.5 | (-)1.1 | (-)0.78 | 0.86 |
| Semi-finished steel | 1.27 | 117.8 | (-)1.2 | (-)2.40 | (-)2.45 |
End
Reported by Shubham Rana
Edited by Vandana Hingorani
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