June WPI inflation grows at 4.9%
Driven by increase in the prices of cereals, rice, wheat, vegetables, onion, egg, meat and fish, the WPI inflation increased to 4.9% (Y-O-Y) for the month of June 2013 as compared to 4.7% (Y-O-Y) for the month of May 2013. The Index for Wholesale Prices for the month of June 2013 rose by 0.6% to 172.7 from 171.6 for the previous month.
Trend in WPI inflation since April 2011 (Y-O-Y %)
Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India
WPI inflation in select commodities
Commodity
|
WPI Inflation Y-o-Y % growth
| |||
Apr'13
|
May'13
|
June’13
| ||
1
|
All Commodities
|
4.77
|
4.70
|
4.86
|
2
|
Primary Articles
|
5.06
|
6.65
|
8.14
|
3
|
Food Articles
|
6.08
|
8.25
|
9.74
|
4
|
Cereals
|
15.52
|
16.01
|
17.18
|
5
|
Vegetables
|
(-) 8.88
|
4.85
|
16.47
|
6
|
Non-food Articles
|
7.59
|
4.88
|
7.57
|
7
|
Fuel & Power
|
8.33
|
7.32
|
7.12
|
8
|
Petrol
|
2.81
|
(-) 4.43
|
(-) 7.78
|
9
|
Manufactured Products
|
3.69
|
3.11
|
2.75
|
10
|
Sugar
|
8.67
|
7.33
|
7.21
|
11
|
Edible oils
|
2.01
|
0.75
|
0.00
|
12
|
Cement & Lime
|
3.88
|
2.97
|
1.67
|
Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India
The build up in inflation in the financial year so far (June 2013) stands at 1.53% as compared to a build up of 2.3% in the corresponding period of the previous year. Buildup in WPI inflation has decreased due to decline in the prices of cereals, wheat, pulses, potato, fruits, milk, oil seeds, petrol, fuel and power, petrol and edible oils etc.
Build up in inflation so far (%)
Source: PHD Research Bureau, compiled from the office of the Economic Advisor, Govt. of
Manufacturing inflation declines to 2.75% (weight 64.97%)
The WPI inflation for manufactured products declined to 2.75% in June 2013 vis-୶is 3.11% in the month of May 2013. The index for this major group rose by 0.1% to 149.3 from 149.1 for the previous month.
Trend in WPI inflation in manufactured products (%)
Source: PHD Research Bureau, compiled from the office of the Economic Advisor
Food inflation rises to 9.74% (Weight 14.34%)
Food inflation for the month of June 2013 has increased to 9.74% as against 8.25% for the month of May 2013, on account of increase in prices of cereals, rice, vegetables, wheat, onion, and egg, meat & fish.
Pattern of food inflation (Y-o-Y %) Food articles Index since Apr 2011
Source: PHD Research Bureau, compiled from the office of the Economic Advisor, Govt. of India
The index for food articles group rose by 3% to 229.8 from 223.1 for the previous month due to higher price of poultry chicken (17%), fruits & vegetables (8%), egg (6%), maize (4%), masur and rice (3% each), fish marine and wheat (2% each) and pork, barley moong and fish-inland (1% each). However, the price of jowar, gram and urad (2% each) and ragi and condiments and spices (1% each) have declined.
Non-food articles inflation rise to 7.57% (weight 4.26%)
The rate of inflation for non-food articles for the month of June 2013 stands at 7.57% as compared to 4.88% for the previous month. The index for non-food articles group rose by 0.1% to 208.8 from 208.5 for the previous month due to higher price of raw cotton (6%), fodder, copra (coconut) and gingelly seed (5% each), safflower (kardi Seed) and raw rubber (4% each), raw silk, rape & mustard seed, tobacco and flowers (2% each) and sunflower, coir fibre and castor seed (1% each). However, the price of guar seed (11%), soyabean (7%), groundnut seed (6%), niger
Fuel & power inflation declines to 7.12% (weight 14.91%)
The rate of inflation for fuel and power for the month of June 2013 stands at 7.12% as compared to 7.32% for the previous month. The index for this major group rose by 1% to 194 from 192 for the previous month due to higher price of light diesel oil and naphtha (3% each), non-coking coal, furnance oil and petrol (2% each) and high speed diesel and bitumen (1% each).
Warm regards,
Dr. S P Sharma
Chief Economist
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