WPI inflation further dips to (-) 2.3% in March 2015
The Wholesale Price Index (WPI) based inflation further dipped to (-) 2.3% in March 2015 (a 37-year low) compared with (-) 2.1% in February 2015. Meanwhile, inflation for January 2015 has been revised downwards to (-) 1% from (-) 0.4% reported earlier. The WPI inflation remained in the negative zone for the fifth straight month.Inflation declined for primary articles and manufactured production contributing to the overall decline in WPI inflation in March 2015, with fuel products inflation rose from (-) 14.7% in February 2015 to (-) 12.6% in March 2015. Inflation of manufactured products turned negative at (-) 0.2% in March 2015 from 0.3% in February 2015. Meanwhile, inflation of primary articles tumbled to 0.1% in March 2015 from 1.4% in February 2015.
As per major commodity group-wise inflation, inflation declined for food grains, fruits, vegetables, spices, coffee, oilseeds, fodder, flowers, iron ore, electricity, sugar, tea, cotton yarn, manmade textiles, chemical products, and metal metals contributing to the decline in inflation in March 2015.
On the other hand, inflation increased for fish, mutton, poultry chicken, raw cotton, crude oil, mineral oils, and cement, restricting the overall decline in inflation in March 2015.
Inflation of food items (food articles and food products) eased from 5.6% in February 2015 to 4.4% in March 2015. Meanwhile, inflation of non-food items (all commodities excluding food items) was flat at 5.0% in March 2015.
Core inflation (manufactured products excluding foods products) turned negative at (-) 0.4% in March 2015 from 0.1% in February 2015.
The contribution of primary articles to the overall inflation at (-) 2.33% declined to 02 basis points, or bps in March 2015 from 38 bps to (-) 2.06% in February 2015. The contribution of manufactured products turned negative at (-) 11 bps from 18 bps, while that of fuel product group rose to (-) 222 bps) from (-) 260 bps.
The contribution of food items (food articles and food products) to inflation eased at 123 bps to (-) 2.33% from 156 bps in March 2015. On the other hand, the contribution of non-food items (all commodities excluding food items) rose to (-) 357 bps in March 2015 compared with (-) 362 bps in February 2015.
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