India's Wholesale Price Index rises to 3.18% in March 2019; these sectors impacted WPI inflation

The Wholesale Price Index (WPI) for March 2019 rose to 3.18% compared to 2.93% (provisional) for the previous month and 2.74% during the corresponding month of the previous year. On month wise, the rise in WPI is gradual by 0.4% to 120.0 (provisional) from 119.5 (provisional) for the previous month. So far in FY19, the build up inflation rate was 3.18% compared to a build up rate of 2.74% in the corresponding period of the previous year. Primary articles which account for 22.62% of WPI numbers, rose by 0.4 percent to 134.7  from 134.2 for the previous month. Under primary articles, index for ‘Food Articles’ group rose by 0.9 percent to 145.1 (provisional) from 143.8 (provisional) for the previous month due to higher price of peas/chawali (7%), fruits & vegetables (6%), maize and jowar (3% each), bajra (2%) and masur (1%). However, the price of fish-marine (6%), egg (5%), gram (3%), mutton, urad and condiments & spices (2% each) and rajma, ragi, wheat, arhar and poultry chicken (1% each) declined.

Meanwhile, the e index for ‘Non-Food Articles’ group declined by 2.6 percent to 123.5 (provisional) from 126.8 (provisional) for the previous month due to lower price of industrial wood (16%), raw silk (7%), sunflower (4%), rape & mustard seed (3%), gingelly seed and safflower (kardi seed) (2% each) and soyabean, floriculture, copra (coconut) and coir fibre (1% each). However, the price of niger seed (15%), raw rubber and raw cotton (4% each), raw wool (2%) and groundnut seed, fodder, castor seed, mesta, raw jute, linseed and hides (raw) (1% each) moved up.

source: tradingeconomics.com

Going forward, the fuel & power index which holds 13.15% weightage in WPI, posted a massive rise of 2.3 percent to 103.3 from 101.0 for the previous month.

In fuel & power index, index for ‘Mineral Oils’ group rose by 4.1 percent to 95.0 (provisional) from 91.3 (provisional) for the previous month due to higher price of ATF, naphtha and furnace oil (9% each), LPG (6%), kerosene (5%), petrol (4%), petroleum coke (3%), HSD (2%) and bitumen (1%). 

On the other hand, the manufacturing products which holds the highes weightage of 64.23% in WPI, surged by  0.2 percent to 118.3 (provisional) from 118.1 (provisional) for the previous month. 

Rise in manufacturing product inflation was due to a host of services. The index for 'Manufacture of Tobacco Products' group rose by 3.2 percent to 153.7 (provisional) from 148.9 (provisional) for the previous month due to higher price of cigarette (8%) and other tobacco products (2%).

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Further, index for ‘Manufacture of Wood and of Products of Wood and Cork’ group rose by 0.8 percent to 135.7 (provisional) from 134.6 (provisional) for the previous month due to higher price of wooden panel (11%) and wooden box/crate (7%). Also, index for ‘Manufacture of Rubber and Plastics Products’ group rose by 0.5 percent to 109.9 (provisional) from 109.4(provisional) for the previous month due to higher price of rubber moulded goods and polythene film (3% each), plastic box/container, polyester film (non-metalized), polypropylene film and plastic tube (flexible/non-flexible) (2% each) and plastic tape, tractor tyre, conveyer belt (fibre based), elastic webbing, rubber crumb and plastic components (1% each). 

Apart from this, index for 'Manufacture of Machinery and Equipment' group rose by 0.7 percent to 112.3 (provisional) from 111.5 (provisional) for the previous month due to higher price of dumper (8%), water purifier (5%), drilling machine (4%), pressure vessel & tank for fermentation & other food processing (4%), pharmaceutical machinery (3%), filtration equipment and precision machinery equipment/form tools (2% each) and roller mill (raymond), industrial valve, air or vacuum pump, open end spinning machinery, oil pump, sewing machines, material handling, lifting & hoisting equipment, loader, excavator, air gas compressor including compressor for refrigerator, clutches & shaft couplings, cranes, mining, quarrying & metallurgical machinery/parts and agriculture implements (1% each).

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 3.29% in February, 2019 to 3.89% in March, 2019.