Core inflation moves up to 5.1% in October 2018
The Wholesale Price Index (WPI)-based inflation, base year 2011-12, increased to a four-month high of 5.3% in October 2018, while recording rise for second straight month. An increase in inflation was driven by rise in inflation for fuel and power group as well as manufactured products group in October 2018. However, the inflation for primary articles declined sharply in October 2018. The core inflation (manufactured products excluding foods products) moved up to 5.1% in October 2018.The WPI inflation is revised upwards to 4.6% for August 2018 from 4.5% reported earlier.
Inflation of primary articles dipped to 1.8% in October 2018 from 3.0% in September 2018. The manufactured products inflation rose to 4.5%, while fuel and power group inflation also moved up to 18.4% in October 2018.
As per major commodity group-wise, inflation increased for fruits, mineral oil, basic metals, electricity, pulses, fibre, furniture, milk, chemical products, textiles, cereals, food products etc. On the other hand, inflation of vegetables, crude petroleum & natural gas, floriculture, motor vehicles, trailers and semi-trailers, machinery and equipment, spices, coal, oilseeds etc declined in October 2018.
Inflation of food items (food articles and food products) turned negative (-) 0.6% in October 2018 from 0.1% in September 2018 level. Meanwhile, inflation of non-food items (all commodities excluding food items) accelerated to 7.7% in October 2018 in 7.3% in September 2018.
The contribution of primary articles to the overall inflation of 5.3% dipped to 47 basis points (bps) in October 2018, down from contribution of 77 bps to 5.1% in September 2018. The contribution of fuel product group increased to 197 bps against 175 bps in September 2018, while that of manufactured products rose to 283 bps in October 2018 from 268 bps in September 2018.
The contribution of food items (food articles and food products) to inflation dipped to (-) 19 bps to 5.3% in October 2018 compared with 4 bps to 5.1% in September 2018. Meanwhile, the contribution of non-food items (all commodities excluding food items) increased to 542 bps in October 2018 from 512 bps in September 2018.
The WPI inflation stood at 4.9% in April-October FY2019 against 2.7% in April-October FY2018. The primary articles inflation increased to 2.5% in April-October FY2019 from 0.4% in April-October FY2018, while fuel products inflation moved up to 15.4% from 9.9%. The inflation for manufactured products rose to 4.1% in April-October FY2019 from 2.6% in April-October FY2018.
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