WPI inflation rises to (-) 3.8% in October 2015

Core inflation eases to (-) 2% in October 2015

The Wholesale Price Index (WPI)-based inflation moved up to (-) 3.81% in October 2015, recording rise for the second straight month from (-) 4.5% in September 2015 and a record low level of (-) 5.1% touched in August 2015. An increase in WPI inflation was mainly driven by higher inflation for food articles and products, and mineral oils in October 2015. However, the WPI inflation continued to be in the negative zone for the twelfth straight month in October 2015. As per the revised data, the inflation figure for August 2015 was scaled down to (-) 5.1% from (-) 5% reported provisionally.

Inflation of primary articles increased to (-) 0.4% from (-) 2.1%, while that for fuel items rose to (-) 16.3% in October 2015 from (-) 17.7% in September 2015. The inflation for manufactured products was flat at (-) 1.7% in October 2015.

As per major commodity group-wise, inflation of foodgrains, vegetables, fruits, spices, raw cotton, oilseeds, crude petroleum, mineral oils, grain mill products, sugar, edible oils, oil cakes, leather products and chemical products rose in October 2015. On the other hand, inflation of milk, fish, meat, poultry chicken, coffee, flowers, iron ore, copper ore, tea, plastic products, pencil ingot, long steel, flat steel, and motor cycle declined in October 2015.

Inflation of food items (food articles and food products) increased to 1.7% in October 2015 from 0.2% in September 2015. Meanwhile, inflation of non-food items (all commodities excluding food items) rose to (-) 6.1% in October 2015 from (-) 6.6% in September 2015.

Core inflation (manufactured products excluding foods products) declined to (-) 2% in October 2015 from (-) 1.9% in September 2015.

The contribution of primary articles to the overall inflation, at (-) 3.81%, was (-) 10 basis points (bps) in October 2015 compared with (-) 59 bps in September 2015. The contribution of manufactured products was (-) 92 bps compared with (-) 95 bps, while that of fuel product group was (-) 279 bps against (-) 305 bps in September 2015.

The contribution of food items (food articles and food products) to inflation increased to 51 bps in (-) 3.81% in October 2015 compared with (-) 07 bps to (-) 4.54% in September 2015. Meanwhile, the contribution of non-food items (all commodities excluding food items) was (-) 432 bps in October 2015 compared with (-) 463 bps in September 2015.

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