December 2016 WPI inflation stands at 3.39%

 

 

The WPI inflation stands at 3.39% in December 2016, 3.15% in November 2016, 3.79% in October 2016, 3.8% in September 2016, 3.85% in August 2016, and 3.72% in July 2016. The increase in WPI inflation in the month of December 2016 is attributed to increase in the prices of cereal (7.49%), wheat (12.82%), mineral s (12.86%), fuel and power (8.65%), etc.

 

Driven by the increase in the prices of cereal, wheat, mineral s, fuel and power, WPI inflation stands at 3.39% in December 2016 as compared to 3.15% in November 2016. The index for this major group declined by 0.2% to 182.8 (provisional)  from 183.1 (provisional) for the previous month.

 

 Trend in WPI Inflation                                                                                                                                                             (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

October’16

November’16

December’16

1

All Commodities

3.79

3.15

3.39

2

Primary Articles

4.18

1.25

0.27

3

Food Articles

4.79

1.54

-0.70

4

Cereals

8.34

7.32

7.49

5

Vegetables

-10.01

-24.10

-33.11

6

Non-food Articles

2.49

-0.14

0.62

7

Fuel & Power

6.24

7.07

8.65

8

Petrol

3.57

5.54

8.52

9

Manufactured Products

2.94

3.20

3.67

10

Sugar

30.94

31.76

28.04

11

Edible oils

4.46

3.98

4.87

12

Cement & Lime

2.54

0.17

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

   

   Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India

 

Build up inflation rate in the financial year so far was 4.28% as compared to a build up rate of 0.40% in the corresponding period of the previous year.

 

  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 3.67% (weight 64.97%)

The WPI inflation for manufactured products stands at 3.67% for December 2016 as against 3.2% for the month of November 2016. The index for this major group rose by 0.1% to 158.0 (provisional) from 157.9 (provisional) for the previous month

 

Trend in WPI inflation in manufactured products                                                                                       (in %)

Source: PHD Research Bureau, compiled from the office of the Economic Advisor

 

Food inflation at (-)0.70% (Weight 14.34%)

Food inflation for the month of December 2016 stands at -0.70% as against 1.54% in November 2016. The index for ‘Food Articles’ group declined by 2.2% to 270.1%(provisional) from 276.1(provisional) for the previous month due to lower prices of fruits& vegetables (9%), arhar(6%), masur and urad(5% each), moong(4%), gram(2%) and poultry chicken(1%). However, the price of ragi(4%), jowar and wheat(3% each) , bajra(2%) and egg, barley pork, condiments & spices, tea and fish-inland(1%each) moved up.

 

Non-food articles inflation at 0.62% (weight 4.26%)

Non-food articles inflation for the month of December 2016 stands at 0.62% as against (-) 0.14% in November 2016. The index for ‘Non-Food Articles’  group rose by 1.9 percent to 225.6 (provisional) from 221.4 (provisional) for the previous month due to higher price of flowers (10%), raw rubber (9%), copra (coconut) and groundnut seed (6% each), raw silk (5%), gingelly seed and raw cotton (2% each) and soyabean, sugarcane and safflower (kardi seed) (1% each).  However, the price of raw jute (4%), sunflower (3%), rape & mustard seed (2%) and coir fibre, niger seed, linseed and raw wool (1% each) declined.

Fuel & power inflation stands at 8.65% (weight 14.91%)

Fuel & power inflation for the month of December 2016 stands at 8.65% as against 7.07% in November 2016. The index for this major group rose by by 0.7 percent to 192.1 (provisional) from 190.7  (provisional) for the previous month due to higher price of furnace oil (5%),  kerosene, petrol and LPG (2% each) and high speed diesel (1%).  However, the price of aviation turbine fuel (4%) and bitumen (2%) declined.

 

Please contact for any query related to this mail to Ms. Surbhi Sharma, Sr. Research Officer at surbhi@phdcci.in with a cc to Dr. S P Sharma, Chief Economist, PHD Chamber of Commerce & Industry.

 

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