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WPI inflation softens to 3.85% in April

15 May 2017 Evaluate

With a new 2011-12 base year, the inflation in the country on wholesale level softened to a four-month low in the month of April on the back of cooling food and manufactured items prices. According to the latest data released by the government, the wholesale price inflation (WPI) stood at 3.85% in April as against 5.29% in the previous month and (-) 1.09% during the corresponding month of the previous year.  Build up inflation rate in the financial year so far was (-) 0.18% compared to a build up rate of 1.21% in the corresponding period of the previous year. 

Component wise, primary articles index, having revised weight of 22.62%, witnessed a rise of 0.4 per cent to 128.4 (provisional) from 127.9 (provisional) for the previous month. Among the primary articles, the index for ‘Food Articles’ group rose by 0.6 percent to 139.4 (provisional) from 138.5 (provisional) for the previous month and the index for ‘Non-Food Articles’ group declined by 0.3 percent to 121.2 (provisional) from 121.6 (provisional) for the previous month.

Fuel & Power index having revised weight of  13.15% decreased by 1.9 per cent to 92.8 (provisional) from 94.6 (provisional) for the previous month owing to lower prices of petrol & high speed diesel and Manufactured Products index having revised weight of 64.23% remained unchanged at its previous month’s level of 112.1 (provisional). The index for ‘Manufacture of Food Products’ group declined by 0.1 percent to 127.3 (provisional) from 127.4 (provisional) for the previous month. The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 5.50% in March, 2017 to 2.90% in April, 2017.

Under the new series of WPI, the government has made changes in weights, number of items and quotations between WPI 2004-05 & WPI 2011-12 to get a more accurate picture of output and price trend. Now, the index basket has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products, with increase in number of quotations from 5482 to 8331.

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