Wholesale Price Index in August Increased Marginally in August
The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of wholesale price in India for the month of August, 2020 (Provisional) and for the month of June, 2020 (Final) in this press release. Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.
The annual rate of inflation, based on monthly WPI, stood at (0.16%) (Provisional) for the month of August, 2020 (over August, 2019) as compared to 1.17% during the corresponding month of the previous year.
|WPI based Indices and Annual Rate of Inflation (%)*|
All Commodities/Major Groups
|Jun-20 (F)||Jul-20 (P)||Aug-20 (P)|
|I PRIMARY ARTICLES||22.6||140.9||-0.07||143.7||0.63||146.3||1.60|
|II FUEL & POWER||13.2||85.6||-16.24||90.7||-9.84||91.4||-9.68|
|III MANUFACTURED PRODUCTS||64.2||118.6||0.08||118.6||0.51||119.3||1.27|
Note: P: Provisional, F: Final, * Annual Rate of Inflation calculated over corresponding month of last year.
The movement of the index for the various commodity groups is summarized below:-
PRIMARY ARTICLES (Weight 22.62%)
The index for this major group increased by (1.81%) to 146.3 (provisional) in August, 2020 from 143.7 (provisional) for the month of July, 2020. Prices of Minerals (10.21%), Crude Petroleum & Natural Gas (4.72%), Non-food Articles (3.06%) and Food Articles (0.93%) increased as compared to July, 2020.
FUEL & POWER (Weight 13.15%)
The index for this major group increased by (0.77%) to 91.4 (provisional) in August, 2020 from 90.7 (provisional) for the month of July, 2020. Prices of Mineral Oils (1.30%) increased as compared to July, 2020. Prices of Coal and Electricity remain unchanged.
MANUFACTURED PRODUCTS (Weight 64.23%)
The index for this major group increased by (0.59%) to 119.3 (provisional) in August, 2020 from 118.6 (provisional) for the month of July, 2020. Out of the 22 NIC two-digit groups for Manufactured products, 11 groups that have witnessed increase in prices are manufacture of food products; beverages; leather and related products; wood and of products of wood and cork; printing and reproduction of recorded media; pharmaceuticals, medicinal chemical and botanical products; basic metals; electrical equipment; machinery and equipment; other transport equipment; other manufacturing in August, 2020 as compared to July, 2020. Whereas 10 groups that have witnessed decrease in prices are manufacture of tobacco products; textiles; wearing apparel; paper and paper products; chemicals and chemical products; rubber and plastics products; other non-metallic mineral products; fabricated metal products, except machinery and equipment; computer, electronic and optical products; furniture in August, 2020 as compared to July, 2020. While the prices of manufacture of motor vehicles, trailers and semi-trailers remain unchanged in August, 2020 as compared to July, 2020.
WPI FOOD INDEX (Weight 24.38%)
The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 152.0 in July, 2020 to 153.3 in August, 2020. The annual rate of inflation based on WPI Food Index decreased from 4.32% in July, 2020 to 4.07% in August, 2020.
FINAL INDEX FOR THE MONTH OF JUNE, 2020 (BASE YEAR:2011-12=100)
For the month of June 2020, the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 119.3 and WPI based rate of inflation stood at -1.81%.