WPI inflation hits 3-month high at 3.18% in April, 2018; how sectors performed

Build up inflation rate in the financial year so far was 0.69% compared to a build up rate of 0.00% in the corresponding period of the previous year.

Representational Image: Photo: Pixabay

The Wholesale Price Index (WPI) inflation for the month of April 2018 rose to 3.18% compared to 2.47% in March 2018 and 2.48% in February 2018. With this, WPI has surged to 3-month high in the latest month.

However, WPI was lower compared to 3.85% during the corresponding month of the previous year.

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of April, 2018 rose by 0.7 percent to 116.8 (provisional) from 116.0 (provisional) for the previous month.

Build up inflation rate in the financial year so far was 0.69% compared to a build up rate of 0.00% in the corresponding period of the previous year.

source: tradingeconomics.com

Primary articles which have weightage of 22.62% in WPI, rose by 1.4 percent to 129.2 (provisional) from 127.4 (provisional) for the previous month.

Under primary articles, the index of food articles group rose by 1.9 percent to 139.8 (provisional) from 137.2 (provisional) for the previous month due to higher price of tea (18%), peas/chawali (13%), fruits & vegetables (8%), fish-marine (4%) and pork, paddy and maize (1% each).

Whereas non-food article index declined by 0.9 percent to 119.1 (provisional) from 120.2 (provisional) for the previous month due to lower price of raw silk (9%), floriculture (7%), niger seed (6%), gaur seed (5%), groundnut seed and linseed (4% each), raw rubber (3%), cotton seed, castor seed and gingelly seed (2% each) and hides (raw), safflower (kardi seed) and raw cotton (1% each).

Index for ‘Minerals’ group rose by 1.6 percent to 121.6 (provisional) from 119.7 (provisional) for the previous month due to higher price of manganese ore (4%), copper concentrate and limestone (3% each) and zinc concentrate and lead concentrate (1% each).

Index for ‘Crude Petroleum & Natural Gas’ group rose by 2.4 percent to 82.1 (provisional) from 80.2 (provisional) for the previous month due to higher price of natural gas (4%) and crude petroleum (2%).

Going ahead, fuel and power segment which has a weight of 13.15% in WPI, rose by 0.9 percent to 98.9 (provisional) in April 2018, from 98.0 (provisional) for the previous month.

Manufacturing products rose by 0.3 percent to 116.1 (provisional) from 115.7 (provisional) for the previous month. This index has the highest weightage in deriving WPI at 64.23%.

Rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from (-) 0.07% in March, 2018 to 0.67% in April, 2018.

For the month of February, 2018, the final WPI for ‘All Commodities’ (Base: 2011-12=100) stood at 116.1 as compared to 115.8 (provisional) and annual rate of inflation based on final index stood at 2.74 percent as compared to 2.48 percent (provisional) respectively.

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