WPI inflation up 0.7 pct in November 2017

The official Wholesale Price Index (WPI) for the month of November, 2017 rose by 0.7 percent to 116.3 (provisional) in comparison to 115.5 (provisional) for the previous month.

The annual rate of inflation, based on monthly WPI, stood at 3.93 percent (provisional) for the month of November, 2017 (over November, 2016) as compared to 3.59 percent (provisional) for the previous month and 1.82 percent during the corresponding month of the previous year.

Build up inflation rate in the financial year so far was 2.74 percent compared to a build up rate of 3.90 percent in the corresponding period of the previous year, as per data released by the Ministry of Commerce and Industry.

The following is the index-wise outlook for the month:

The index for 'Food Articles' group rose by 1.8 percent to 150.6 (provisional) from 148.0 (provisional) for the previous month due to higher price of betel leaves (12 percent), egg (11 percent), fruits and vegetables (seven percent) and fish-marine, beef and buffalo meat, pork, condiments and spices and wheat (one percent each).

However, the price of ragi and gram (seven percent each), maize and jowar (four percent each), urad and rajma (three percent each), arhar, peas/chawali, masur, bajra and moong (two percent each) and poultry chicken and barley (one percent each) declined.

Meanwhile, the index for 'Non-Food Articles' group declined by 1.9 percent to 116.9 (provisional) from 119.2 (provisional) for the previous month due to lower price of tanning materials (35 percent), fodder (10 percent), raw rubber, raw silk and raw jute (four percent each), skins (raw), castor seed and soyabean (three percent each), mesta and coir fibre (two percent each) and safflower (kardi seed), guar seed and hides (raw) (one percent each).

However, the price of copra (coconut) (three percent), raw wool, floriculture, cotton seed and gingelly seed (two percent each) and rape and mustard seed and raw cotton (one percent each) moved up.

The index for 'Coal' group rose by 0.1 percent to 117.6 (provisional) from 117.5 (provisional) for the previous month due to higher price of lignite (one percent).

The index for 'Mineral Oils' group rose by 2.9 percent to 84.6 (provisional) from 82.2 (provisional) for the previous month due to higher price of LPG (12 percent), naphtha (7 percent), bitumen and furnace oil (3 percent each), ATF, HSD and petroleum coke (two percent each) and petrol (one percent).

The index for 'Manufacture of Tobacco Products' group rose by 4.3 percent to 155.3 (provisional) from 148.9 (provisional) for the previous month due to higher price of cigarette (nine percent) and other tobacco products and beedi (two percent each).

The index for 'Manufacture of Textiles' group rose by 0.3 percent to 113.5 (provisional) from 113.2 (provisional) for the previous month due to higher price of weaving and finishing of textiles (two percent) and synthetic yarn, luore yarn, luorescen and twisted yarn and viscose yarn (one percent each). However, the price of cotton yarn and manufacture of cordage, rope, twine and netting (two percent each), and manufacture of knitted and crocheted fabrics (one percent) declined.

The index for 'Manufacture of Wearing Apparel' group rose by 0.3 percent to 137.5 (provisional) from 137.1 (provisional) for the previous month due to higher price of manufacture of knitted and crocheted apparel (one percent).

The index for 'Manufacture of Leather and Related Products' group rose by 0.3 percent to 119.5 (provisional) from 119.1 (provisional) for the previous month due to higher price of gloves of leather (three percent), chrome tanned leather (two percent) and harness, saddles and other related items, travel goods, handbags, office bags, canvas shoes and leather shoe (one percent each).

However, the price of belt and other articles of leather (nine percent) and waterproof footwear (one percent) declined.

The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group declined by 0.2 percent to 110.4 (provisional) from 110.6 (provisional) for the previous month due to lower price of passenger vehicles, radiators and coolers and minibus/bus (one percent each). However, the price of body (for commercial motor vehicles) (five percent) and chain, crankshaft, engine and shafts of all kinds (one percent each) moved up.

The 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 3.23 percent in October, 2017 to 4.10 percent in November, 2017.