Core WPI inflation eases marginally to 2.0% in June 2017
The Wholesale Price Index (WPI)-based inflation, base year 2011-12, dipped to a 11-month low of 0.9% in May 2017, showing sharp moderation for fourth straight months from 33-month high of 5.5% in February 2017. The WPI inflation dipped driven by fall in inflation for all three major sub-groups - primary articles, fuel and power group as well as manufactured products group in May 2017.Inflation of primary articles plunged to (-) 3.9% in June 2017 from (-) 1.8% in May 2017. The inflation for fuel items dipped to 5.3% in June 2017 from 11.7% in May 2017. The inflation for manufactured products also fell to 2.3% in June 2017 from 2.6% in May 2017.
As per major commodity group-wise, inflation declined for foodgrains, vegetables, milk, spices, tea, coffee, betel leaves, fibres, oilseeds, fodder, metallic minerals, crude petroleum, mineral oils, electricity, food products, textiles, wearing apparel, paper & products, pharmaceutical products, rubber and plastic products, computer & products, machinery & equipment, motor vehicle, and other transport equipment in June 2017. On the other hand, inflation of fruits, 'egg, meat & fish', coking coal, beverages, leather products, wood products, media, chemical products, other non-metallic mineral products, basic metals, electrical equipment, furniture, and other manufacturing increased in June 2017.
Inflation of food items (food articles and food products) turned negative to (-) 1.2% in June 2017 from 0.1% in May 2017 level. Meanwhile, inflation of non-food items (all commodities excluding food items) also eased to 1.8% in June 2017 from 3.1% in May 2017.
Core inflation (manufactured products excluding foods products) eased marginally to 2.0% in June 2017 from 2.1% in May 2017.
The contribution of primary articles to the overall inflation, at 0.90%, was negative at (-) 103 basis points (bps) in June 2017 compared with (-) 47 bps to 2.17% in May 2017. The contribution of fuel product group dipped to 53 bps against 113 bps in May 2017, while that of manufactured products was lower at 144 bps compared with 163 bps.
The contribution of food items (food articles and food products) to inflation turned negative at (-) 37 bps in 0.90% in June 2017 compared with 4 bps to 2.17% in May 2017. Meanwhile, the contribution of non-food items (all commodities excluding food items) was 125 bps in June 2017 compared with 221 bps in May 2017.
The WPI inflation stood at 2.3% in April-June FY2018 against (-) 0.7% in April-June FY2017. The primary articles inflation was at (-) 1.6% in April-June FY2018 from 4.6% in April-June FY2017, while fuel products inflation increased to 11.2% from (-) 13.6%. The inflation for manufactured products bounced to 2.6% in April-June FY2018 from (-) 0.6% in April-June FY2017.
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