November 2014 WPI inflation stands at 0%

The WPI inflation for the month of Nov 2014 declined to 0% from 1.7% in Oct 2014, 2.4% in Sep 2014, 3.8% in Aug 2014, 5.4% in July 2014 and 5.6% in June 2014. The decline in WPI inflation in the month of Nov 2014 is attributed to decline in the prices of primary articles (-)0.98%, food articles (0.63%) and fuel and power (-)4.91%.

Driven by the decrease in the prices of cereals, rice, potato, fruits, milk, fuel and power, the WPI inflation declined to 0% (Y-O-Y) for the month of November 2014 as compared to 1.77% (Y-O-Y) for the month of October 2014. The Index for Wholesale Prices for the month of November 2014 declined by 1.3% to 181.5 from 183.9 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
		Sep’14	Oct’14	Nov’14
1	All Commodities	2.38	1.77	0.00
2	Primary Articles	2.02	1.43	-0.98
3	Food Articles	3.68	2.70	0.63
4	Cereals	3.28	3.29	2.09
5	Vegetables	(-) 15.14	(-)19.61	(-)28.57
6	Non-food Articles	0.66	(-)1.41	(-)3.65
7	Fuel & Power	1.33	0.43	(-)4.91
8	Petrol	(-) 9.42	(-) 7.03	(-) 9.96
9	Manufactured Products	2.97	2.43	2.04
10	Sugar	2.10	1.75	1.22
11	Edible oils	(-) 2.32	(-)2.44	(-)3.29
12	Cement & Lime	4.98	2.62	4.09

     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 (November 2014) stands at 0.67% as compared to a build up of 6.7% in the corresponding period of the previous year. Buildup in WPI inflation has declined due to fall in the prices of cereals, rice, onion, fuel and power etc.

   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 2.04% (weight 64.97%)

The WPI inflation for manufactured products stands at 2.04% for the month of November 2014 as against 2.43% in October 2014. The index for this major group declined by 0.3% to 155.4 from 155.8 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 declines to 0.63% (Weight 14.34%)

Food inflation for the month of November 2014 has declined to 0.63% from 2.70% for the month of October 2014, mainly on account of decrease in the prices of cereals, rice, potato, fruits and milk.

  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 declined by 0.4% to 257.5 from 258.5 for the previous month due to lower price of bajra and tea (4% each), ragi and fruits & vegetables (3% each), maize (2%) and barley, poultry chicken, jowar, rice and gram (1% each). However, the price of moong (6%), fish-inland (5%), egg (4%), coffee and mutton (3% each), fish-marine (2%) and wheat, arhar and condiments & spices (1% each) have moved up.

Non-food articles inflation at (-)3.65% (weight 4.26%)

The rate of inflation for non-food articles for the month of November 2014 stands at (-)3.65% as compared to (-)1.41% for the previous month. The index for Non-Food Articles group declined by 0.7% to 208.5 from 210 for the previous month due to lower price of guar seed and niger seed (6% each), sunflower (5%), copra (coconut) (4%), cotton seed, raw rubber and safflower (kardi seed) (3% each), groundnut seed, raw cotton and gingelly seed (sesamum) (2% each) and flowers and raw wool (1% each). However, the price of raw jute (5%), soyabean and castor seed (4% each), fodder (2%) and mesta and logs & timber (1% each) moved up.

Fuel & power inflation stands at (-)4.91% (weight 14.91%)

The rate of inflation for fuel and power for the month of November 2014 stands at (-) 4.91% as compared to 0.43% for the previous month. The index for this major group declined by 5.4% to 199.3 from 210.7 for the previous month due to lower price of furnace oil (13%), high speed diesel oil (10%), aviation turbine fuel (8%), petrol (5%) and kerosene (3%).