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Tuesday, July 14, 2015

WPI inflation flat at (-) 2.4% in June 2015

Core inflation declined to (-) 1% in June 2015 from (-) 0.6% in May 2015 

The Wholesale Price Index (WPI)-based inflation was unchanged at (-) 2.4% in June 2015 compared with May 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. As per the revised data, the inflation figure for April 2015 was scaled up to (-) 2.43% from (-) 2.65% reported provisionally. 

Inflation of primary articles was steady at (-) 0.8%, while that for manufactured products declined to (-) 0.8% in June 2015. However, the inflation of fuel items rose marginally to (-) 10.0% in June 2015 from (-) 10.5% in May 2015. 

As per major commodity group-wise, inflation eased of fruits, vegetables, milk, ‘egg, meat and fish', iron ore, bakery products, sugar, cement, iron, steel, aluminium, industrial machinery, electrical machinery, and electrical accessories restricting any rise in inflation in June 2015. 

On the other hand, inflation increased for foodgrains, spices, raw jute, oilseeds, sugarcane, raw rubber, fodder, flowers, crude petroleum, mineral oils, edible oils, oilcakes, tea, cigarette, cotton yarn, man made fibre, plywood, basic inorganic chemicals, fertilizers restricting any fall in inflation in June 2015. 

Inflation of food items (food articles and food products) eased to 1.9% in June 2015 from 2.3% in May 2015. Meanwhile, inflation of non-food items (all commodities excluding food items) rose to (-) 4.1% in June 2015 from (-) 4.3% in May 2015. 

Core inflation (manufactured products excluding foods products) declined to (-) 1% in June 2015 from (-) 0.6% in May 2015. 

The contribution of primary articles to the overall inflation, at (-) 2.4%, was flat at (-) 21 basis points (bps) in June 2015 compared with May 2015. The contribution of manufactured products declined to (-) 43 bps from (-) 36 bps, while that of fuel product group increased to (-) 174 bps from (-) 183 bps. 

The contribution of food items (food articles and food products) to inflation eased to 55 bps in (-) 2.4% from 67 bps in (-) 2.36% in May 2015. Meanwhile, the contribution of non-food items (all commodities excluding food items) increased to (-) 293 bps in June 2015 compared with (-) 305 bps in May 2015.
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