Informist, Friday, Jun 14, 2024
--India May WPI inflation rate 2.61% vs 1.26% Apr
--Informist poll estimated India May WPI inflation at 2.7%
--India May WPI food inflation 7.40% vs 5.52% Apr
--India May WPI primary articles inflation 7.20% vs 5.01% Apr
--India May WPI fuel and power inflation 1.35% vs 1.38% Apr
--India May WPI manufactured products inflation 0.78% vs -0.42% Apr
--India May WPI all commodity index up 0.2% on month
--India May WPI food index up 1.1% on month
--India May WPI primary articles index up 0.5% on month
--India May WPI fuel and power group index down 2.7% on month
--India May WPI manufactured products index up 0.6% on month
--India May WPI vegetable index up 3.9% on month
--India May WPI cereals index up 0.1% on month
--India May WPI edible oils index down 0.1% on month
--India May WPI basic metals index up 2.9% on month
--India Mar WPI inflation rate revised to 0.26% vs 0.53% provisional
--India May WPI core inflation rate 0.4% vs -0.7% Apr
--India May WPI inflation rate at 15-month high
--India May WPI core inflation rate positive after 14 months
MUMBAI – India's annual inflation rate based on the Wholesale Price Index rose to a 15-month high of 2.61% in May from 1.26% the previous month because of a rise in wholesale food prices, data released today by the commerce and industry ministry showed. WPI inflation was (-)3.61% in May last year.
The May WPI inflation print was slightly lower than the consensus estimate. According to a poll by Informist, WPI inflation for the month was seen at 2.7%.
The overall index rose 0.2% on month in May.
Wholesale food inflation rose to a 10-month high of 7.40% in May from 5.52% in April. Sequentially, the food index was up 1.1% last month.
The rise in food inflation was led by vegetables and pulses. Wholesale pulses inflation was at a six-month high of 21.95% in May, while vegetable inflation was at a nine-month-high of 32.42%.
On a sequential basis, the wholesale pulses index rose 4.0% in May, while the vegetable index was up 3.9% from April. Within vegetables, potato prices rose 15.4% month-on-month in May, while tomato prices were up 7.7% from April.
The 'eggs, meat and fish' index also rose in May, up 3.4% from the previous month. The fruits index rose 2.0% on month.
Manufactured products inflation turned positive at 0.78% in May, after staying in negative territory for 14 consecutive months. On a sequential basis, the manufactured products index rose 0.6% compared to April.
Wholesale fuel and power inflation remained in positive territory for the second month in May at 1.35%, after having stayed negative for 11 straight months up to March.
Wholesale core inflation also turned positive in May, after staying in the negative zone for 14 consecutive months, which added to the rise in headline WPI inflation during the month. Wholesale core inflation was 0.4% in May as against (-)0.7% in April.
"Global commodity prices, including those for the Indian basket of crude oil have also retreated on a month-on-month basis in June so far," Aditi Nayar, chief economist at ICRA, said in a note. "This would help contain the uptick in the year-on-year WPI inflation print in the month, countering the adverse base," Nayar noted. ICRA expects headline WPI inflation to rise to around 3.0% in June.
The following table details the sequential and annual increase in the main components of the WPI:
| Weight | May | Month-on-month | Year-on-year change (in %) | ||
| change (in %) | May | April | |||
| ALL COMMODITIES | 100.00 | 153.3 | 0.2 | 2.61 | 1.26 |
| PRIMARY ARTICLES | 22.62 | 187.7 | 0.5 | 7.20 | 5.01 |
| Food articles | 15.26 | 199.1 | 1.5 | 9.82 | 7.74 |
| Cereals | 2.82 | 199.6 | (-)0.2 | 9.01 | 8.72 |
| Pulses | 0.64 | 223.9 | 4.0 | 21.95 | 16.58 |
| Vegetables | 1.87 | 236.1 | 3.9 | 32.42 | 23.60 |
| Potato | 0.28 | 311.7 | 15.4 | 64.05 | 71.97 |
| Onion | 0.16 | 204.2 | (-)0.3 | 58.05 | 59.75 |
| Tomato | 0.28 | 262.8 | 7.7 | 64.46 | 40.55 |
| Fruits | 1.60 | 202.3 | 2.0 | 5.81 | (-)1.78 |
| Milk | 4.44 | 183.7 | (-)0.3 | 3.61 | 4.30 |
| Eggs, meat, and fish | 2.40 | 178.4 | 3.4 | 0.68 | 0.88 |
| Non-food articles | 4.12 | 156.3 | (-)1.3 | (-)3.99 | (-)4.41 |
| Oil seeds | 1.12 | 179.4 | (-)0.1 | (-)4.98 | (-)6.41 |
| Minerals | 0.83 | 224.0 | 1.1 | 4.28 | (-)1.34 |
| Iron ore | 0.21 | 132.5 | (-)2.5 | 8.78 | 10.49 |
| Crude petroleum | 1.95 | 132.4 | (-)6.8 | 11.07 | 6.52 |
| FUEL and POWER | 13.15 | 150.6 | (-)2.7 | 1.35 | 1.38 |
| Coal | 2.14 | 135.8 | 0.0 | 1.19 | 0.22 |
| Liquefied petroleum gas | 0.64 | 120.0 | (-)1.2 | 2.48 | (-)9.40 |
| Petrol | 1.60 | 157.8 | (-)0.4 | 0.51 | (-)0.63 |
| High speed diesel | 3.10 | 167.7 | (-)0.5 | (-)1.06 | (-)1.86 |
| Electricity | 3.06 | 137.8 | (-)11.7 | (-)0.43 | 6.27 |
| MANUFACTURED PRODUCTS | 64.23 | 141.7 | 0.6 | 0.78 | (-)0.42 |
| Food products | 9.12 | 163.2 | 0.4 | 2.71 | 1.25 |
| Edible oils | 2.64 | 147.4 | (-)0.1 | (-)1.54 | (-)5.02 |
| Textiles | 4.88 | 135.9 | 0.3 | 0.00 | (-)1.24 |
| Chemical, chemical products | 6.47 | 135.8 | (-)0.2 | (-)2.72 | (-)3.61 |
| Non-metallic mineral products | 3.20 | 132.2 | (-)0.5 | (-)1.86 | (-)1.78 |
| Cement and lime | 1.64 | 132.6 | (-)0.7 | (-)3.42 | (-)3.33 |
| Basic metals | 9.65 | 144.1 | 2.9 | 0.35 | (-)3.65 |
| Semi-finished steel | 1.27 | 120.1 | 2.0 | (-)1.88 | (-)4.07 |
Source: Ministry of Commerce and Industry
End
Reported by Shubham Rana
Edited by Avishek Dutta
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