WPI Inflation plunges to 25-months of low of 1.1% in July 2019

Core WPI inflation dips to 33-months low of 0.2% in July 2019

The Wholesale Price Index (WPI)-based inflation, base year 2011-12, has dipped to a 25-month low of 1.1% in July 2019 from 2.0% in June 2019. The inflation for all three major sub-group - primary articles, fuel and power and manufactured products groups have declined contributing to the fall in overall WPI inflation in July 2019. The core inflation (manufactured products excluding foods products) also plunged to 33-months low of 0.2% in July 2019.

The WPI inflation is revised upwards to 2.8% for May 2019 from 2.5% reported earlier.

As per major commodity group-wise, inflation dipped for vegetables, mineral oils, crude petroleum & natural gas, metallic minerals, eggs, meat & fish, chemicals and chemical products, fabricated metal products, except machinery and equipment, textiles, basic metals, other non-metallic mineral products, motor vehicles, trailers and semi-trailers, milk, fibres, floriculture, pulses, other transport equipment etc. On the other hand, inflation of fruits, electricity, other non-food articles, cereals, other manufacturing, computer, electronic and optical products, printing and reproduction of recorded media, condiments & spices etc increased in July 2019.

 

Inflation of primary articles fell to 5.0% in July 2019 from 6.7% in June 2019. The inflation for fuel and power group inflation dipped further below sub-zero level to (-) 3.6% and the manufactured products inflation also dipped further to 0.3% in July 2019.

Inflation of food items (food articles and food products) eased to 4.5% in July 2019 from 5.0% in June 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) turned negative at (-) 0.2% in July 2019 from 0.9% in June 2019.

The contribution of primary articles to the overall inflation of 1.08% dipped to 128 basis points (bps) in July 2019, from contribution of 169 bps to 2.02% in June 2019. The contribution of fuel product group further declined to (-) 42 bps against (-) 25 bps in June 2019, while that of manufactured products eased to 21 bps in July 2019 from 59 bps in June 2019.

The contribution of food items (food articles and food products) to inflation eased to 128 bps to 1.08% in July 2019 compared with 141 bps to 2.02% in June 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) turned negative to (-) 16 bps in July 2019 from 63 bps in June 2019.

The WPI inflation fell to 2.3% in April-July FY2020 against 4.8% in April-July FY2019. The primary articles inflation moved up to 6.3% in April-July FY2020 from 3.3% in April-July FY2019, while fuel products inflation tumbled to (-) 0.1% from 13.8%. The inflation for manufactured products dipped to 1.2% in April-July FY2020 from 4.0% in April-July FY2019.

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