March WPI inflation eases to 5.96%
Driven by decrease in the prices of cereals, rice, wheat, pulses, vegetables, potato, onion, fruits, milk, egg, meat and fish, fuel and power, the WPI inflation decreased to 5.96 % (Y-O-Y) for the month of March 2013 as compared to 6.84% (Y-O-Y) for the month of February 2013. The Index for Wholesale Prices for the month of March 2013 rose by 0.2% to 170.6 from 170.02 for the previous month.
Trend in WPI inflation since January 2010 (Y-O-Y %)
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 (Apr-Mar FY2013) far was 5.96% as compared to a build up of 7.69% in the corresponding period of the previous year (Apr-Mar FY2012). Buildup in WPI inflation has decreased due to decline in the prices of vegetables, milk, egg, meat & fish, petrol, minerals, fuel and power and edible oil,etc.
WPI inflation in select commodities
Commodity
|
WPI Inflation Y-o-Y % growth
| |||
Jan'13
|
Feb'13
|
Mar'13
| ||
1
|
All Commodities
|
7.31
|
6.84
|
5.96
|
2
|
Primary Articles
|
11.41
|
9.70
|
7.60
|
3
|
Food Articles
|
12.35
|
11.38
|
8.73
|
4
|
Cereals
|
18.60
|
19.19
|
18.36
|
5
|
Vegetables
|
30.02
|
12.11
|
-0.95
|
6
|
Non-food Articles
|
13.00
|
10.06
|
8.95
|
7
|
Fuel & Power
|
9.27
|
10.47
|
10.18
|
8
|
Petrol
|
3.43
|
6.25
|
5.12
|
9
|
Manufactured Products
|
4.95
|
4.51
|
4.07
|
10
|
Sugar
|
10.09
|
10.21
|
9.41
|
11
|
Edible oils
|
7.54
|
6.53
|
2.40
|
12
|
Cement & Lime
|
5.18
|
5.05
|
5.40
|
Source: PHD Research Bureau, compiled from the office of the Economic Advisor to the Govt. of India
Build up in Inflation in select food commodities (%)
Source: PHD Research Bureau, compiled from the office of the Economic Advisor, Govt. of India
Manufacturing inflation declines to 4.07% (weight 64.97%)
The WPI inflation for manufactured products decreased to 4.07% in March 2013 vis-Ã -vis 4.51% in the month of February 2013. The index for this major group rose by 0.1% to 148.4 from 148.2 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 declines to 8.73% (Weight 14.34%)
Food inflation for the month of March 2013 has declined to 8.73% as against 11.38% for the month of February 2013, on account of decrease in prices of cereals, rice, wheat, pulses, milk, vegetables, potato, 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
Non-food articles inflation scales down to 8.95% (weight 4.26%)
The rate of inflation for non-food articles for the month of March 2013 stands at 8.95% as compared to 10.06% for the previous month. The index for non-food articles group rose by 0.6% to 206.9 from 205.6 for the previous month due to higher prices of logs & timber (16%), soybean (11%), raw rubber (7%), mesta and gingelly seed (5% each) and raw cotton, raw silk and raw jute (4% each). However, the prices of flower (18%), rape & mustard seed (9%), copra (coconut), fodder (3% each), groundnut seed and guar seed (1% each) have declined.
Fuel & power inflation declines to 10.18% (weight 14.91%)
The rate of inflation for fuel and power for the month of March 2013 stands at 10.18% as compared to 10.47% for the previous month. The index for this major group rose by 0.4% to 195.9 from 195.2 for the previous month due to higher prices of aviation turbine fuel (4%), high speed diesel and lignite (2% each). However, the prices of naphtha and light diesel oil (2% each) and petrol (1%) have declined.
Warm regards,
Dr. S P Sharma
Chief Economist
________________________________________________________
PHD Research Bureau
PHD Chamber of Commerce and Industry
August Kranti Marg, New Delhi – 110016
Tel 91 11 49545454, Fax 91 11 26855450
E mail – research@phdcci.in
Website www.phdcci.in
