Core WPI inflation eases to 1.2% in May 2019
The Wholesale Price Index (WPI)-based inflation, base year 2011-12, declined to 22-month low of 2.5% in May 2019 from 3.1% in April 2019. The inflation declined for primary articles, while the inflation for fuel and power group and manufactured products growth also dipped contributing to the fall in overall WPI inflation in May 2019. The core inflation (manufactured products excluding foods products) plunged to 1.2% in May 2019.The WPI inflation is revised downwards to 3.1% for March 2019 from 3.2% reported earlier.
Inflation of primary articles declined from 57-months high of 6.5% in April 2019 to 6.2% in May 2019. However, the inflation for fuel and power group inflation plunged to 31-months low of 1.0% and the manufactured products inflation also dipped to 31-month low of 1.3% in May 2019.
As per major commodity group-wise, inflation dipped for basic metals, mineral oils, electricity, vegetables, crude petroleum & natural gas, chemicals and chemical products, fabricated metal products, except machinery and equipment, eggs, meat & fish, textiles, rubber and plastics products, milk, cereals, pharmaceuticals, medicinal chemical and botanical products, tobacco products, other manufacturing, printing and reproduction of recorded media, paper and paper products, motor vehicles, trailers and semi-trailers, furniture. On the other hand, inflation of food products, fruits, other non-metallic mineral products, machinery and equipment, metallic minerals, pulses, other non-food articles, other transport equipment, condiments & spices, floriculture, wearing apparel, computer, electronic and optical products etc increased in May 2019.
Inflation of food items (food articles and food products) rose to 5.1% in May 2019 from 4.9% in April 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) declined to 1.5% in May 2019 from 2.4% in April 2019.
The contribution of primary articles to the overall inflation of 2.5% declined to 155 basis points (bps) in May 2019, from contribution of 164 bps to 3.1% in April 2019. The contribution of fuel product group declined to 11 bps against 43 bps in April 2019, while that of manufactured products eased to 81 bps in May 2019 from 110 bps in April 2019.
The contribution of food items (food articles and food products) to inflation rose to 142 bps to 2.5% in May 2019 compared with 139 bps to 3.1% in April 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) declined to 105 bps in May 2019 from 174 bps in April 2019.
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The WPI inflation fell to 2.8% in April-May FY2020 against 4.2% in April-May FY2019. The primary articles inflation moved up to 6.3% in April-May FY2020 from 3.2% in April-May FY2019, while fuel products inflation tumbled to 2.4% from 10.3%. The inflation for manufactured products dipped to 1.5% in April-May FY2020 from 3.6% in April-May FY2019.
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