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Rise in food prices pushes WPI inflation higher

Author: IANS/Monday, August 14, 2017/Categories: Economy

Rise in food prices pushes WPI inflation higher

New Delhi, Aug 14 - An exponential rise in food prices pushed India’s annual rate of inflation based on wholesale prices to 1.88% in July, official data showed here on Monday.

According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI), with the revised base year of 2011-12, went up in July 2017 to 1.88% from 0.90% in June.

On a year-on-year (YoY) basis, the WPI had risen by 0.63% in July 2016.

"The annual rate of inflation, based on monthly WPI, stood at 1.88% (provisional) for the month of July, 2017 (over July, 2016) as compared to 0.90% (provisional) for the previous month and 0.63% during the corresponding month of the previous year," the ministry said in the "Index Numbers of Wholesale Price in India" for July.

"Build up inflation rate in the financial year so far was 0.62% compared to a build-up rate of 3.81% in the corresponding period of the previous year."

The wholesale prices had decelerated in June to 0.90% from May's rise of 2.26% and an increase of 3.85% reported for April.

On a segment-wise basis, expenses on primary articles, which constitute 22.62% of the WPI's total weightage, edged-higher by 0.46% from a decline of (-)3.86% in June 2017.

However, the acceleration in WPI prices for primary articles during the month under review was slower on a YoY basis, as it had risen by 6.03% in July 2016.

Similarly, prices of food articles rose massively by 2.15% from a deceleration of (-)3.47% during June 2017 and a rise of 8% in July 2017.

In terms of food prices, the wholesale inflation rate for onion was lower year-on-year by (-)9.50%, while that for potatoes plunged by (-)42.45%.

In contrast, the overall, vegetable prices in July rose by 21.95%, against a rise of 12.59% in the same month a year ago.

As per the data, on YoY basis, wheat became cheaper by (-)1.16%, while protein-based food items such as eggs, meat and fish became dearer by 3.30%.

Prices of other major group under the WPI -- manufactured products -- which comprise nearly 64.23% of the index, rose by 2.18%. The sub-category of manufactured food products registered a rise of 2.09%.

The fuel and power price major-index's inflation accelerated by 4.37%.

Segment-wise, the price of high-speed diesel rose by 5.49% during July, while that for petrol climbed by 9.60%, and for LPG by 0.28%.

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S Vijaykrishnan
S Vijaykrishnan


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