Core WPI inflation plunges to (-) 1.9% in November 2019
The Wholesale Price Index (WPI)-based inflation, base year 2011-12, rebounded to 3-months high of 0.6% in November 2019, while snapping consistent moderation for last six straight months to 0.2% in October from 3.2% in April 2019.Among the three major sub-groups, the inflation for primary articles and fuel and power increased, while inflation for manufactured products group was steady in November 2019. The core inflation (manufactured products excluding foods products) slipped further down into sub-zero level to (-) 1.9% in November 2019 from (-) 1.6% in October 2019.
The WPI inflation is revised slightly upwards to 1.2% for August 2019 from 1.1% reported at provisional level.
As per major commodity group-wise, inflation increased for vegetables, crude petroleum & natural gas, food products, electricity, floriculture, mineral oils, motor vehicles, trailers and semi-trailers, basic metals, fruits, condiments & spices, eggs, meat & fish, fabricated metal products, except machinery and equipment, other non-food articles, milk, pulses etc. On the other hand, inflation of metallic minerals, chemicals and chemical products, oil seeds, fibres, machinery and equipment, other manufacturing, electrical equipment, textiles, rubber and plastics products, wood and of products of wood and cork, other food articles, paper and paper products, cereals, other non-metallic mineral products, other minerals, tobacco products, pharmaceuticals, medicinal chemical and botanical products etc declined in November 2019.
Inflation of primary articles increased to 7.7% in November 2019 from 6.4% in October 2019. The inflation for fuel and power group inflation increased to (-) 7.3% and the manufactured products inflation was steady at (-) 0.8% in November 2019.
Inflation of food items (food articles and food products) increased to 71-month high of 9.0% in November 2019 from 7.6% in October 2019 level. Meanwhile, inflation of non-food items (all commodities excluding food items) rose to (-) 2.7% in November 2019 from (-) 2.8% in October 2019.
The contribution of primary articles to the overall inflation of 0.58% increased to 195 basis points (bps) in November 2019, from contribution of 163 bps to 0.16% in October 2019. The contribution of fuel product group further increased to (-) 87 bps against (-) 99 bps in October 2019, while that of manufactured products was flat at (-) 53 bps in November 2019.
The contribution of food items (food articles and food products) to inflation increased to 253 bps to 0.58% in November 2019 compared with 214 bps to 0.16% in October 2019. Meanwhile, the contribution of non-food items (all commodities excluding food items) rose to (-) 194 bps in November 2019 from (-) 200 bps in October 2019.
The WPI inflation fell to 1.4% in April-November FY2020 against 4.9% in April-November FY2019. The primary articles inflation moved up to 6.4% in April-November FY2020 from 2.4% in April-November FY2019, while fuel products inflation tumbled to (-) 3.4% from 15.5%. The inflation for manufactured products dipped to 0.3% in April-November FY2020 from 4.1% in April-November FY2019.
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