May WPI inflation eases to 4.7%
Driven by decrease in the prices of wheat, pulses, potato, fuel and power, oil seeds, sugar, cement & lime the WPI inflation decreased to 4.7% (Y-O-Y) for the month of May 2013 as compared to 4.89% (Y-O-Y) for the month of April 2013. The Index for Wholesale Prices for the month of May 2013 rose by 0.1% to 171.6 from 171.5 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
| |||
Mar'13
|
Apr'13
|
May'13
| ||
1
|
All Commodities
|
5.65
|
4.89
|
4.70
|
2
|
Primary Articles
|
7.36
|
5.75
|
6.65
|
3
|
Food Articles
|
8.63
|
6.08
|
8.25
|
4
|
Cereals
|
17.86
|
15.63
|
16.01
|
5
|
Vegetables
|
-1.68
|
-9.05
|
4.85
|
6
|
Non-food Articles
|
9.32
|
7.59
|
4.88
|
7
|
Fuel & Power
|
7.76
|
8.84
|
7.32
|
8
|
Petrol
|
6.58
|
3.04
|
-4.43
|
9
|
Manufactured Products
|
4.28
|
3.41
|
3.11
|
10
|
Sugar
|
9.35
|
8.90
|
7.33
|
11
|
Edible oils
|
3.60
|
0.69
|
0.75
|
12
|
Cement & Lime
|
5.64
|
4.18
|
2.97
|
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 (May 2013) stands at 0.88% as compared to a build up of 1.80% 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, onion, fruits, egg, meat & fish, 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 3.11% (weight 64.97%)
The WPI inflation for manufactured products decreased to 3.11% in May 2013 vis-୶is 3.41% in the month of April 2013. The index for this major group rose by 0.3% to 149.1 from 148.7 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 increased to 8.25% (Weight 14.34%)
Food inflation for the month of May 2013 has increased to 8.25% as against 6.08% for the month of April 2013, on account of increase in prices of cereals, rice, milk, vegetables, onion, fruits, 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 1.5% to 223.1 from 219.8 for the previous month due to higher price of poultry chicken and ragi (5% each), fruits & vegetables (4%), fish-marine (3%), rice (2%) and bajra, condiments & spices and milk (1% each). However, the price of tea (5%), coffee and maize (2% each) and wheat, barley, moong, jowar, gram and egg (1% each) have declined.
Non-food articles inflation scales down to 4.88% (weight 4.26%)
The rate of inflation for non-food articles for the month of May 2013 stands at 4.88% as compared to 7.59% for the previous month. The index for non-food articles group declined by 0.6% to 208.5 from 209.7 for the previous month due to lower price of gingelly seed (8%), guar seed (5%), groundnut seed, castor seed, niger seed and copra (3% each), fodder, rape & mustard seed and raw jute (2% each) and linseed (1%). However, the price of safflower and raw rubber (4% each), soyabean and raw silk (3% each) and cotton seed (1%) have moved up.
Fuel & power inflation declines to 7.32% (weight 14.91%)
The rate of inflation for fuel and power for the month of May 2013 stands at 7.32% as compared to 8.84% for the previous month. The index for this major group declined by 1.3% to 192.0 from 194.6 for the previous month despite higher price of electricity (13%) as price of other items such as LPG (12%), coal (10%), aviation turbine fuel (6%) and petrol (5%) have declined.
Warm regards,
Dr. S P Sharma
Chief Economist
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