The annual rate of inflation, based on monthly WPI, stood at 5.77% (provisional) for the month of June, 2018 (over June, 2017) as compared to 4.43% (provisional) for the previous month and 0.90% during the corresponding month of the previous year.
This is one of the highest rates of inflation in recent months, and could indicate problems for the Narendra Modi government ahead of elections next year.
Inflation had been in the 2.7-3.6 range till April.
Fuels, which contribute about 13.15% of the total weightage of WPI, saw a sharp increase due to the increase in crude oil prices. LPG prices were higher by about 20%, while petrol was up by 17.5% and diesel by a whopping 21.6%.
Build up inflation rate in the financial year so far was 2.49% compared to a build up rate of -0.44% in the corresponding period of the previous year.
The index for ‘Food Articles’ group rose by 1.1 percent to 141.7 (provisional) from 140.1 (provisional) for the previous month due to higher price of egg (5%), fruits & vegetables (4%), maize and fish-marine (3% each), jowar (2%) and barley.
The index for ‘Non-Food Articles’ group rose by 2.9 percent to 122.5 (provisional) from 119.1 (provisional) for the previous month due to higher price of raw cotton (11%), industrial wood (8%), safflower (kardi seed) (3%), sunflower, groundnut seed, cotton seed, linseed, mesta and hides (raw) (2% each).
FUEL & POWER
The index for this major group rose by 3.0 percent to 104.1 (provisional) from 101.1 (provisional) for the previous month.
The index for ‘Mineral Oils’ group rose by 3.5 percent to 96.9 (provisional) from 93.6 (provisional) for the previous month due to higher price of furnace oil (10%), ATF (7%), LPG and naphtha (6% each), bitumen (3%), HSD, petrol and kerosene (2% each) and petroleum coke (1%).
The index for this major group rose by 0.4 percent to 117.3 (provisional) from 116.8 (provisional) for the previous month.
The index for ‘Manufacture of Food Products’ group rose by 1.0 percent to 128.5 (provisional) from 127.2 (provisional) for the previous month due to higher price of sugar (7%), rice products (4%), coffee powder with chicory, manufacture of macaroni, noodles, couscous & similar farinaceous products and gur and processed tea (3% each).
WPI FOOD INDEX
The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 1.12% in May, 2018 to 1.56% in June, 2018.
PRICE INFLATION (WPI) IN INDIA – JUNE 2018
|Commodities/Major Groups/Groups/Sub-Groups||Weight (%)||Rate of Inflation for the last six months|
|Eggs, Meat & Fish||2.40||-0.07||0.15||-2.00||-0.82||-0.22||0.37|
|FUEL & POWER||13.15||16.18||11.22||7.96||4.70||4.55||4.73|
|Manufacture of Food Products||9.12||1.10||0.24||0.55||0.47||-1.09||-0.94|
|Manufacture of Vegetable And Animal Oils and Fats||2.64||13.69||13.21||11.19||7.93||3.18||1.35|
|Manufacture of Tobacco Products||0.51||4.16||5.80||3.70||5.70||7.73||5.81|
|Manufacture of Textiles||4.88||2.02||1.67||0.97||1.15||1.61||1.71|
|Manufacture of Wearing Apparel||0.81||3.34||4.68||4.77||3.46||4.92||3.13|
|Manufacture of Leather and Related Products||0.54||1.84||1.33||2.94||0.00||0.42||-0.50|
|Manufacture of Wood And of Products of Wood and Cork||0.77||0.99||1.68||0.99||1.08||0.69||0.38|
|Manufacture of Paper and Paper Products||1.11||1.86||2.80||3.78||3.98||5.41||4.63|
|Manufacture of Chemicals and Chemical Products||6.47||5.83||5.01||4.21||3.40||3.41||3.07|
|Manufacture of Rubber and Plastics Products||2.30||0.93||0.46||-0.09||-1.10||-1.38||-1.02|
|Manufacture of other Non-Metallic Mineral Products||3.20||2.22||2.84||3.78||4.30||4.78||4.96|
|Manufacture of Cement, Lime and Plaster||1.64||-1.13||-0.09||1.78||3.93||5.49||4.39|
|Manufacture of Basic Metals||9.65||17.34||15.79||13.35||14.64||16.12||13.45|
|Mild Steel – Semi Finished Steel||1.27||12.40||12.09||9.66||8.64||9.64||7.92|
|Manufacture of Fabricated Metal Products, Except Machinery and Equipment||3.15||6.34||4.16||2.86||3.23||4.18||4.31|
|Manufacture of other Transport Equipment||1.65||1.10||1.38||2.22||0.45||2.46||1.54|