Inflation for primary articles and fuel products slips to sub-zero level in November 2014
The Wholesale Price Index (WPI)-based inflation dipped to a 64-month low of 0% in November 2014 from 1.77% in October 2014. Inflation reading in November 2014 was the lowest since (-) 0.3% in July 2009.Inflation eased for all three major product groups contributing to the overall decline in inflation. Inflation for primary articles dipped to sub-zero level of (-) 1%, while inflation for fuel and power group plunged to (-) 4.9% in November 2014 from 0.4% in October 2014. Further, inflation for manufactured products eased to 2% from 2.4%.
As per major commodity group-wise inflation, inflation for vegetables, fruits, milk, food grains, spices, oilseeds, sugarcane, crude petroleum, fuel products, bakery products, edible oils, oil cakes, textiles items, rubber products, chemical products, ferrous metals, electronics, gold & gold ornaments and motor cycles eased, contributing to the overall decline in inflation in November 2014.
On the other hand, inflation for fish, fibres, iron ore, and cement increased in November 2014 from the October 2014 level.
Inflation for food items (food articles and food products) declined to 0.8% in November 2014 from 2.5% in October 2014. Meanwhile, inflation for non-food items (all commodities excluding food items) also declined to (-) 0.4% from 1.6%. Core inflation (manufactured products excluding foods products) eased to 2.2% from 2.6%.
The contribution of primary articles to the overall inflation declined to (-) 28 basis points, or bps, to 0% inflation) in November 2014 from 40 bps to 1.77% in October 2014. The contribution of the fuel product group dipped to (-) 85 bps) from 07 bps, while that of manufactured products eased to 111 bps from 133 bps.
The contribution of food items (food articles and food products) to inflation eased to 25 bps to 0% from 74 bps in October 2014. On the other hand, the contribution of non-food items (all commodities excluding food items) turned negative at (-) 25 bps in November 2014 compared with 110 bps in October 2014.
Of the 676 commodities, the inflation rate for about 233 commodities, which carry 33% weight in the WPI, rose in November 2014 compared with the October 2014 inflation rate. About 303 commodities, holding 55% weight in the WPI, witnessed a decline in the inflation rate in November 2014. However, inflation for 140 commodities, carrying 12% weight in WPI, remained unchanged in November 2014.
As per revised data available, inflation for September 2014 was retained unchanged at 2.4%.
Powered by Capital Market - Live News
