Wholesale inflation eases to 2.48% in Feb'18

New Delhi : The annual rate of inflation, based on monthly Wholesale Price Index (WPI) stood at 2.48 percent (provisional) for the month of February 2018 as compared to 2.84 percent (provisional) for the previous month, and 5.51 percent during the corresponding month of the previous year.

As per data released by the Ministry of Commerce and Industry on Wednesday, the official WPI for 'All Commodities' for the month of February, 2018 remained unchanged at its previous month level of 115.8 (Provisional).

Build up inflation rate in the financial year so far was 2.30 percent compared to 4.92 percent in the corresponding period of the previous year, the ministry said.

The index for 'Food Articles' group declined by 2.0 percent to 137.8 (provisional) from 140.6 (provisional) for the previous month due to lower price of fruits and vegetables (9 percent), gram, tea and masur (4 percent each), rajma and bajra (3 percent each), and wheat (1 percent). However, the price of betel leaves (13 percent), ragi (3 percent) and arhar, maize, poultry chicken and paddy (1 percent each) moved up.

The index for 'Non-Food Articles' group declined by 0.1 percent to 120.6 (provisional) from 120.7 (provisional) for the previous month due to lower price of floriculture (15 percent), niger seed (5 percent), raw cotton and linseed (3 percent each), raw rubber and skins (raw) (2 percent each) and cotton seed, and copra (coconut) (1 percent each). However, the price of soyabean (11 percent), mesta (8 percent), raw jute (5 percent), guar seed (4 percent), raw wool and fodder (2 percent each) moved up.

The index for 'Crude Petroleum and Natural Gas' group rose by 2.9 percent to 80.6 (provisional) from 78.3 (provisional) for the previous month due to higher price of crude petroleum (3 percent) and natural gas (2 percent).

The index for 'Coal' group rose by 1.2 percent to 122.6 (provisional) from 121.1 (provisional) for the previous month due to higher price of non-coking coal (2percent).

The index for 'Mineral Oils' group rose by 1.8 percent to 89.8 (provisional) from 88.2 (provisional) for the previous month due to higher price of ATF (7 percent), kerosene and lube oils (4 percent each), furnace oil (3 percent), HSD and petrol (two percent each) and petroleum coke (1 percent). However, the price of bitumen and naphtha (two percent each) declined.

The index for 'Manufacture of Tobacco Products' group rose by 0.9 percent to 152.7 (provisional) from 151.3 (provisional) for the previous month due to higher price of cigarette (two percent) and biri (one percent).

The index for 'Manufacture of Textiles' group rose by 0.6 percent to 113.7 (provisional) from 113.0 (provisional) for the previous month due to higher price of weaving and finishing of textiles, cotton yarn, synthetic yarn and manufacture of made-up textile articles, except apparel (one percent each). However, the price of manufacture of other textiles (one percent) declined.

The index for 'Manufacture of Machinery and Equipment' group rose by 1.5 percent to 109.7 (provisional) from 108.1 (provisional) for the previous month due to higher price of agricultural tractors (16 percent), pressure vessel and tank for fermentation and other food processing (10 percent), roller mill (raymond) (nine percent), hydraulic pump, industrial valve, roller and ball bearings, and injection pump (one percent each).

However, the price of cranes (12 percent), solar power system (solar panel and attachable equipment) (6 percent), open end spinning machinery and filtration equipment (4 percent each), chemical equipment and system, excavator and packing machine (two percent each) and drilling machine, and pharmaceutical machinery (one percent each) declined.

The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group rose by 0.4 percent to 111.1 (provisional) from 110.7 (provisional) for the previous month due to higher price of brake pad/brake liner/brake block/brake rubber, others (5 percent), engine (2 percent) and seat for motor vehicles, piston ring/piston and compressor, head lamp and body (for commercial motor vehicles) (1percent each).

However, the price of cylinder liners (2 percent) and wheels/wheels and parts, chassis of different vehicle types, silencer and damper and shafts of all kinds (one percent each) declined.

Meanwhile, the rate of inflation based on WPI Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group decreased from 1.65 percent in January, 2018 to 0.07 percent in February, 2018.