Monday 16 February 2015


January 2015 WPI inflation stands at (-)0.39%
 
The WPI inflation for the month of January 2015 declined to (-)0.39% from 0.11% in Dec 2014, (-)0.17% in Nov 2014, 1.66% in Oct 2014, 2.38% in Sept 2014, 3.85% in Aug 2014 and 5.41% in July 2014. The decrease in WPI inflation in the month of Jan 2015 is attributed to decrease in the prices of particularly potatoes(2.11%), fibres(-19.43%) and egg, meat and fish(-1.5%). The decline in inflation in manufactured products can be attributed to the decline in global commodities prices.
Driven by the increase in the prices of fibres, potatoes and egg, meat and fish, the WPI inflation decreased to (-)0.39% (Y-O-Y) for the month of January 2015 as compared to 0.11% (Y-O-Y) for the month of January 2015. The Index for Wholesale Prices for the month of December 2014 declined by 0.8% to 178.3 from 179.8 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
Nov’14
Dec’14
Jan'15
1
All Commodities
(-)0.17
0.11
(-)0.39
2
Primary Articles
(-)1.61
2.17
3.27
3
Food Articles
0.66
5.20
8.00
4
Cereals
2.17
1.26
1.65
5
Vegetables
(-)28.38
(-)4.78
19.74
6
Non-food Articles
(-)3.65
(-)3.06
(-)4.07
7
Fuel & Power
(-)4.53
(-)7.82
(-)10.69
8
Petrol
(-)9.55
(-) 11.96
(-)17.08
9
Manufactured Products
1.90
1.57
1.05
10
Sugar
0.21
(-)1.17
(-)1.25
11
Edible oils
(-)3.29
(-)2.83
(-)0.88
12
Cement & Lime
4.21
1.58
3.41

     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 (January 2015) stands at (-)1.11% as compared to a build up of 5.23% in the corresponding period of the previous year. Buildup in WPI inflation has declined due to fall in the prices of food articles, cereals, rice, wheat, potato, fibre, Egg, Meat & Fish, Non-Food Articles, minerals, fuel& power and manufactured products .
   Build up in inflation from March in select food commodities                                (%)

 
Source: PHD Research Bureau, compiled from the office of the Economic Advisor, Govt. of India
Manufacturing inflation stands at 2.04% (weight 64.97%)
The WPI inflation for manufactured products stands at 1.05% for the month of January 2015 as against 1.57% in December 2014. The index for this major group declined by 0.3% to 154.5 from 154.9 for the previous month.
Food inflation declines to 0.63% (Weight 14.34%)
Food inflation for the month of January 2015 has increased to 8% from 5.20% for the month of December 2014, mainly on account of increase in the prices of pulses, onion and vegetables.
The index for ‘Food Articles’ group declined by 0.1% to 252.4 (provisional) from 252.7 (provisional) for the previous month due to lower price of egg (4%), jowar (3%), beef & buffalo meat and mutton (2% each) and fruits & vegetables and fish-inland (1% each).  However, the price of urad (7%), masur and gram (5% each), arhar, moong and barley (4% each), maize (3%), fish-marine and bajra (2% each) and ragi, wheat, pork and condiments & spices (1% each) moved up.
Non-food articles inflation at (-)3.06% (weight 4.26%)
The rate of inflation for Non food articles for the month of January 2015 stands at (-) 4.07% as compared to (-)3.06 for the previous month. The index for ‘Non-Food Articles’ group declined by 0.7 percent to 207.6 (provisional) from 209.1 (provisional) for the previous month due to lower price of flowers (9%), cotton seed (7%), raw silk (5%), raw cotton (3%), sunflower, gingelly seed and castor seed (2% each) and fodder (1%).  However, the price of niger seed (6%), raw rubber (5%), copra (coconut) (4%), soyabean (3%), rape & mustard seed and mesta (2% each) and gaur seed and groundnut seed (1% each) moved up.
 Fuel & power inflation stands at (-)7.82% (weight 14.91%)
The rate of inflation for fuel and power for the month of January 2015 stands at (-) 10.69% as compared to (-)7.82% for the previous month. The index for this major group declined by 2.5% to  189.7 (provisional) from 194.6  (provisional) for the previous month due to lower price of aviation turbine fuel (14%), furnace oil (6%) and petrol and high speed diesel (4% each).

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