WPI inflation in negative zone for tenth straight month
The Wholesale Price Index (WPI) based inflation dipped further into sub-zero level to (-) 4.95% in August 2015 compared with (-) 4.05% in July 2015. The WPI inflation continued to be in negative zone for the tenth straight month in August 2015. As per the revised data, the inflation figure for June 2015 was scaled up to (-) 2.1% from (-) 2.4% reported provisionally.Inflation of primary articles was flat at (-) 3.7%, while that for manufactured products slipped to (-) 1.9% in August 2015. The inflation of fuel items also plunged to (-) 16.5% in August 2015 from (-) 12.8% in July 2015.
As per major commodity group-wise, inflation eased of food milk. spices, oilseeds, copper ore, mineral oils, dairy products, sugar, edible oils, oil cakes, beverages, textiles item, rubber and plastic products, chemical products, and basic metals in August 2015. On the other hand, inflation increased for food grains, vegetables, fruits, fish, raw cotton, flowers, crude oil, tea, paper products, and leather products in August 2015.
Inflation of food items (food articles and food products) dipped to (-) 1.5% in August 2015, after slipping into sub-zero level at (-) 1.4% in July 2015. Meanwhile, inflation of non-food items (all commodities excluding food items) further dipped to (-) 6.4% in August 2015 from (-) 5.2% in July 2015.
Core inflation (manufactured products excluding foods products) declined to (-) 1.9% in August 2015 from (-) 1.4% in July 2015.
The contribution of primary articles to the overall inflation, at (-) 4.95%, was (-) 105 basis points (bps) in August 2015 compared with (-) 102 bps in July 2015. The contribution of manufactured products was (-) 105 bps compared with (-) 81 bps, while that of fuel product group was (-) 283 bps against (-) 222 bps in July 2015.
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The contribution of food items (food articles and food products) to inflation stood at (-) 44 bps in (-) 4.95% compared with 40 bps to (-) 4.05% in July 2015. Meanwhile, the contribution of non-food items (all commodities excluding food items) was (-) 450 bps in August 2015 compared with (-) 364 bps in July 2015.
As per commodity-wise look-up, the contribution of tomato dipped 50 bps, while that of diesel also plunged 47 bps in August 2015 from July 2015 level. Further, the contribution of milk eased 13 bps, naphtha 07 bps, and other oil cakes 05 bps. The share of copper ore and furnace oil eased 04 bps each, while that of sugar, aviation turbine fuel and poultry chicken declined 03 bps each. The share of rice, banana, copra (coconut), gold & gold ornaments, HRC, potato declined 02 bps each. Further, the contribution of rounds, other petrochemical intermediates, guar seed, okra (lady finger), rebars, fish-marine, bricks & tiles, pencil ingots, iron ore, sheets, cigarette, gingelly seed (sesamum), coconut (fresh), woollen yarn, sapota, petrochemical building blocks decreased 01 bp each in August 2015 over July 2015.
On the other hand, the contribution to the overall inflation of onion increased by 25 bps, followed by brinjal 11 bps, mango 10 bps, cabbage 08 bps, and fish inland 06 bps in August 2015. The share of rice bran extraction, teal leaf, papaya, fodder moved up 02 bps each. The share of crude petroleum, raw cotton, rose, marigold, books/ periodicals/ journals, cashew kernel, maize, tea, cashew nut, battery dry cells, grey cement, gram powder (besan), arhar, petrol, gram, cotton yarn (unbleached), guava, processed prawn rose 01 bp each in July 2015.
Of the 676 commodities, the inflation rate of about 201 commodities, which carry 26.1% weight in the WPI, increased in August 2015 compared with the July 2015 inflation rate. About 307 commodities, holding 58.5% weight in the WPI, witnessed a decline in the inflation rate. However, the inflation rate was unchanged for 168 commodities, carrying 15.4% weight in WPI, in August 2015.
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