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WPI inflation eases to 4.7% in May 2013

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Capital Market
Last Updated : Jun 14 2013 | 4:00 PM IST
India's WPI based inflation declined to 4.7% in May 2013 from 4.9% in April 2013. The decline in inflation was driven by lower inflation for manufactured products at 3.1%, showing decline from 3.4% in April 2013. The inflation for fuel and power group also declined to 7.3% from 8.8%, but that for primary articles increased 6.7% in May 2013 from 5.8% in April 2013.

The core inflation has declined further down to 41-months low of 2.4% in May 2013 from 2.7% in April 2013.

The inflation figure for March 2013 has been revised downward to 5.65% compared to 5.96% reported earlier. With the revision to March 2013 figure, the inflation for FY2013 stood at 7.4% compared to 8.9% for FY2012.

The decline in manufactured inflation for May 2013 was caused by decline in inflation for chemical products to 3.3% from 3.9%, while inflation for basic metal declined to (-) 1.5% from (-) 1.0%. Further, the inflation for transport equipment and non-metallic mineral products also declined to 3.8% and 3.1%, respectively in May 2013.

Within the fuel and power group, the inflation for electricity surged to 27.9% from 13.2%, while that for coal and mineral oils dipped to (-) 9.8% and 6.9% in May 2013.

The increase in inflation for primary articles was driven by rebound in inflation for vegetables to 4.9% in May 2013 from (-) 9.1% in April 2013. Meanwhile, the inflation for 'egg, meat & fish' and 'condiment and spices' also moved up to 11.2% and 16.6% in May 2013. However, the inflation for food grains eased to 13.9% in May 2013.

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First Published: Jun 14 2013 | 2:50 PM IST

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