April WPI Inflation Hits 3-Month High Of 3.18%; Food And Oil Prices Main Triggers

On Monday, WPI data revealed for the month of April shows a three-month hig figure of 3.18%, thanks to the rising food and crude oil prices. In contrast, the Reuters poll, analysts estimated the figure at 2.86%. In February and March 2018, the wholesale price inflation was 2.48% and 2.47% respectively.

In the corresponding month the previous year, the WPI inflation was a tad higher at 3.85% in comparison to the figure for the latest month.

Wholesale Price Index for 'All Commodities' with base 2011-12 for the April month has increased by 0.7% from 116.0 (provisional) for the previous month to 116.8 for April month.

Build-up inflation rate has also increased 0.69% so far in the ongoing financial year in comparison to 0.00% during the same period last year.

The index for manufacturing products that bears the highest weightage in the WPI index also rose 0.3% to 116.1 (provisional).

Primary articles with a weightage of 22.62% in the overall WPI index also increased 1.4% to 129.2 (provisional) against 127.4 (provisional) in the previous month. Within the category, index of food items also surged 1.9% due to increase in the price of peas/chawali (13%), tea (18%), fruits and vegetables (8%/), pork, paddy and maize (1% each) and fish and other marine items (4%).

On the other hand, the index for non-food items saw a decline of 0.9% due to decrease in the price of raw silk (9%), floriculture (7%), niger seed (6%), gaur seed (5%), groundnut seed and linseed (4% each), raw rubber (3%), cotton seed, castor seed and gingelly seed (2% each) and hides (raw), safflower (kardi seed) and raw cotton (1% each).

'Crude Petroleum & Natural Gas' group index also saw a jump of 2.4% to 82.1 (provisional) with the increase in the price of crude petroleum and natural gas.
Minerals group index also rallied by 1.6% to 12.6 due to an increase in price of copper concentrate, limestone (by 3% each), zinc concentrate and lead concentrate (1% each) and manganese ore (4%),

Fuel and power category, which has a weightage of 13.15% in the total WPI index, also increased by 0.9% to 98.9 (provisional).

WPI food index that comprises food articles as well as food product, from two different categories including primary articles and manufactured products respectively also increased 0.67% in the latest period under review in comparison to the drop of 0.07% in the previous month.

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