Tag: wpi

  • WPI Inflation India, September 2022: India’s wholesale inflation eases to 10.70% in September, govt knowledge reveals

    WPI Inflation Rate in India, India Wholesale Price Index (WPI) September 2022 Data: India’s wholesale inflation eased to 10.70 per cent in September, knowledge launched by the Ministry of Commerce & Industry confirmed.

    The wholesale value index (WPI) had spiked to 12.41 per cent throughout the month of August, whereas the WPI for July was revised to 14.07 per cent from 13.93 per cent, the information confirmed. The WPI in September 2021 was 11.80 per cent.

    Despite the easing within the wholesale inflation knowledge, the WPI continues to stay within the double digits for the 18th consecutive month starting April 2021.

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  • Inflation rises to 7.4% in Sept, manufacturing facility output declines in August

    RISING to a five-month excessive, retail inflation charge reached 7.41 per cent in September, pushed primarily by a spike in meals inflation that jumped to a 22-month excessive. Separately launched information on industrial output additionally mirrored grim financial exercise, with the manufacturing facility output based mostly on the Index of Industrial Production slipping into adverse territory after a spot of 17 months to (-) 0.8 per cent in August.

    This compounds the issue for the Reserve Bank of India, which has to rein in inflation whereas not stymieing development. Several businesses together with the World Bank and the IMF have already lowered India’s development forecast beneath 7 per cent for the present monetary yr. The RBI, which has hiked coverage charges by 190 factors within the final 5 months to five.90 per cent, is scheduled to fulfill in December to debate and resolve on charge motion.

    Retail inflation at 7.41 per cent for September marks the ninth consecutive month (or three quarters) of the headline inflation charge remaining above the higher threshold of the Reserve Bank of India’s goal of 4 +/- 2 per cent, and three years of staying above 4 per cent, based on information launched by National Statistical Office on Wednesday.

    With this, the RBI will now have to write down to the federal government in a letter explaining the explanations for its failure to maintain inflation below goal, as required below the Monetary Policy Framework Agreement signed between the RBI and the Union Ministry of Finance.

    Manufacturing output, which accounts for 77.6 per cent of the burden of the IIP, contracted 0.7 per cent in August, whereas shopper durables and shopper non-durables – an indicator of fast-moving shopper items – additionally contracted 2.5 per cent and 9.9 per cent, respectively, indicating subdued consumption demand.

    Capital items output, nonetheless, grew 5 per cent in August, indicating frontloading of capital expenditure by the Union Government which grew 46.81 per cent year-on-year throughout April-August 2022.

    Experts mentioned the economic restoration continues to be fragile and the decline in August is off the mark on condition that often this era sees a pickup in stocking up of inventories forward of the upcoming festive season. “The negative growth in consumer durable is a bit perplexing as usually around this time the consumer durable manufacturers step up their production to create adequate inventory to meet the upcoming festival season demand. The pattern of growth across used based classification suggests that consumption demand is likely to witness more headwinds in the coming months from high inflation and reversal of interest rate cycle, but the demand for capital/ infrastructure goods may continue to get support from the sustained government capex spending. This reinforces our view that the ongoing industrial recovery not only continues to be fragile but is also not broad based,” Sunil Kumar Sinha, Principal Economist, India Ratings mentioned.

    ExplainedWhy RBI faces a troublesome activity

    The economic system faces many headwinds — rising imports, excessive crude oil costs, and stress on the forex. The RBI could also be pressured to proceed with financial tightening whilst the federal government roots for increased development charges.

    Going forward, consultants mentioned excessive frequency indicators have improved in September and are more likely to assist pickup in IIP. “The year-on-year growth of most available high frequency indicators improved in September 2022 relative to August 2022, amidst the onset of the festive season, such as Coal India Limited’s output, vehicle registrations, electricity generation, ports cargo traffic, rail freight traffic and diesel consumption, which is likely to help the IIP return to a positive, albeit modest growth, in the just-concluded month,” Aditi Nayar, Chief Economist, ICRA mentioned.

    Food inflation, as measured by mixed meals value index, rose to eight.60 per cent in September, up from 7.62 per cent in August and 0.68 per cent a yr in the past. Inflation in rural areas was at 7.56 per cent, increased than city inflation at 7.27 per cent in September, with meals inflation at 8.53 per cent and eight.65 per cent, respectively. Cereals inflation rose to 11.53 per cent in September from 9.57 per cent final month, whereas greens inflation elevated to 18.05 per cent from 13.23 per cent. Clothing and footwear inflation rose to double-digit of 10.17 per cent in September from 9.91 per cent a month in the past, whereas gas and light-weight inflation inched right down to 10.39 per cent from 10.78 per cent. Among states, the best inflation charge in September was recorded by West Bengal (9.44 per cent), Telangana (8.67 per cent) and Madhya Pradesh (8.65 per cent)

    Despite a excessive beneficial base impact subsequent month onwards, inflation charge might rise above 6 per cent given the current extreme rainfall in early October, setting stage for an additional charge hike by the RBI in December. “CPI inflation rose as expected in September, led by food prices, while October is also tracking just above 6%. The RBI will struggle to pause its hiking cycle if CPI remains out of target, shifting the balance of risks towards another rate hike in December,” Rahul Bajoria, Chief India Economist, Barclays mentioned.

    The Monetary Policy Committee is anticipated to carry a particular assembly to debate and draft the letter to be despatched to the federal government. Last month, RBI Governor Shaktikanta Das had mentioned the central financial institution considers the communication to the federal government for lacking the inflation targets as privileged communication and won’t be making it public.

  • Retail inflation spikes to a 5-month excessive of seven.41% in Sep, IIP contracts 0.8% in Aug: Govt knowledge

    India CPI Inflation Rate September, IIP Growth August 2022: India’s retail inflation, which is measured by the Consumer Price Index (CPI), rose to a five-month excessive of seven.41 per cent within the month of September, up from 7.00 per cent in August. Separately, India’s manufacturing unit output, measured via the Index of Industrial Production (IIP), witnessed a contraction of (-)0.8 per cent in August, two separate knowledge launched by the Ministry of Statistics & Programme Implementation (MoSPI) confirmed on Wednesday.

    This is the ninth consecutive time that the CPI print has come above the Reserve Bank of India’s (RBI) higher margin of 6 per cent. The authorities has mandated the central financial institution to keep up retail inflation at 4 per cent with a margin of two per cent on both aspect for a five-year interval ending March 2026.

    A latest Reuters ballot of economists had forecast the September CPI to spike to 7.30 per cent.

    CPI knowledge is primarily factored in by the RBI whereas making ready their bi-monthly financial coverage. On September 30, the Monetary Policy Committee (MPC) hiked the repo fee by 50 foundation factors (bps) to five.90 per cent. So far on this monetary yr, the MPC has raised the important thing rate of interest by 190 bps in a bid to verify the raging inflation. However, regardless of their transfer, retail inflation continues to stay above the higher tolerance stage.

    The Consumer Food Price Index (CFPI) or the inflation within the meals basket too confirmed a month-on-month rise throughout September to eight.60 per cent, from 7.62 per cent in August, the information revealed.

    Prices of greens rose 18.05 per cent on yr in September. Apart from this, the spices noticed an increase of 16.88 per cent whereas that cereals and merchandise gained 11.53 per cent and milk and merchandise rose 7.13 per cent. Egg costs slipped (-)1.79 per cent however fruits grew 5.68 per cent.

    Apart from meals and drinks, the gas and light-weight phase rose 10.39 per cent, clothes and footwear spiked 10.17 per cent and the housing phase inched up 4.57 per cent.

    Industrial output (IIP)

    India’s manufacturing unit output, which is measured in IIP witnessed a contraction of (-)0.8 per cent on-year to 131.3 in August, a separate knowledge launched by the MoSPI confirmed.

    The IIP had risen 13.0 per cent in August 2021, the information confirmed.

    The industrial output to date within the fiscal yr 2022-23 (April-August) has risen 7.7 per cent, in comparison with a spike of 29.0 per cent within the corresponding interval a yr in the past, the information confirmed.

    The IIP contractiobn in August was primarily due to manufacturing and mining sectors. The manufacturing sector contracted (-)0.7 per cent on-year to 131.0 in Augus whereas the mining sector noticed a decline of (-)3.9 per cent to 99.6. The electrical energy sector was the one one which witnessed a development of 1.4 per cent to 191.3, the MoSPI knowledge confirmed.

    In August final yr, the manufacturing sector had witnessed an increase of 11.1 per cent. During the identical month, the mining sector had surged 23.3 per cent, whereas the electrical energy sector had witnessed a development of 16.0 per cent, the information confirmed.

  • India’s WPI inflation spikes to fifteen.08% in April: Govt information

    India Wholesale Price Index (WPI) Data: The wholesale inflation throughout the nation rose to fifteen.08 per cent in April, information launched by the Ministry of Commerce & Industry confirmed.

    The wholesale worth index (WPI) grew 14.55 per cent throughout the month of March, whereas the WPI for February was revised to 13.11 per cent from 13.43 per cent, the info confirmed. The WPI in April 2021 was at 10.74 per cent.

    The WPI inflation has remained within the double digits for the thirteenth consecutive month ranging from April 2021.

    “The high rate of inflation in April, 2022 was primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, food articles, non-food articles, food products and chemicals & chemical products etc. as compared to the corresponding month of the previous year,” the federal government stated in its press launch.

    The meals articles section witnessed an increase of 8.35 per cent in April, the info confirmed. In the month previous to that, this was 8.06 per cent. The marginal month-on-month rise may be attributed to an increase in vegetable costs.

    Vegetable costs rose 23.24 per cent in April, towards an increase of 19.88 per cent in March, the info confirmed. Prices of potato climbed 19.84 per cent whereas that of onions slipped (-)4.02 per cent. However the costs of fruits witnessed a spike of 10.89 per cent final month from 10.62 per cent in March, whereas that of wheat eased to 10.70 per cent from 14.04 per cent a month in the past. Eggs, meat and fish costs eased to 4.50 per cent in April from 9.42 per cent a month in the past and cereals rose 7.80 per cent final month compared to 8.12 per cent in March.

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  • India’s WPI inflation spikes to 14.23% in November: Govt information

    India WPI November 2021: The wholesale inflation throughout the nation rose to 14.23 per cent in November, information launched by the Ministry of Commerce & Industry confirmed.
    The wholesale value index (WPI) grew 12.54 per cent throughout the month of October, whereas the WPI for September was revised to 11.80 per cent from 10.66 per cent, the info confirmed. The WPI in November 2020 was at 2.29 per cent.

    “The high rate of inflation in November 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year,” the discharge mentioned.
    The meals articles phase witnessed a 4.88 per cent spike in November, the info confirmed. In the month previous to that, this was (-)1.69 per cent.
    Vegetable costs rose 3.91 per cent in November, in opposition to (-)18.49 per cent contraction in October, the info confirmed. Prices of potato fell (-)49.54 per cent whereas that of onions slipped (-)30.14 per cent. Apart from this, costs of pulses grew 2.9 per cent final month, whereas that of wheat rose 10.14 per cent. Eggs, meat and fish costs rose 9.66 per cent in November.
    The gasoline and energy phase inched as much as 39.81 per cent in November from 37.18 per cent a month in the past. Petrol costs rose by 85.38 per cent, HSD (High-Speed Diesel) gained by 86.07 per cent and LPG costs inched up by 65.24 per cent.
    The manufactured merchandise phase rose 11.92 per cent final month led by a 29.06 per cent soar in primary metals.
    In separate information launched by the federal government on Monday, the retail inflation or shopper value index (CPI) rose to a three-month excessive of 4.91 per cent in November.

  • Oct: Costlier crude pushes up wholesale inflation to 5-month excessive

    The wholesale inflation shot to a 5-month excessive of 12.54 per cent final month, primarily on account of an increase in costs of manufactured merchandise and crude petroleum.
    Inflation, primarily based on the Wholesale Price Index (WPI), has remained in double digits for the seventh straight month in October. WPI inflation in September was at 10.66 per cent, whereas in October 2020 it was at 1.31 per cent.
    The October WPI is the best in 5 months since May, when it was at 13.11 per cent.
    In a press release, the Commerce and Industry Ministry mentioned, “The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc as compared to the corresponding month of the previous year.”
    With PTI inputs

  • WPI inflation rises to 2.03 laptop in Jan on costlier manufactured gadgets, meals costs ease

    Image Source : ANI WPI inflation rises to 2.03 laptop in Jan on costlier manufactured gadgets, meals costs ease
    The wholesale price-based inflation rose to 2.03 p.c in January 2021, at the same time as meals costs cooled. The WPI inflation was 1.22 p.c in December 2020 and three.52 p.c in January final yr. While meals articles noticed softening in inflation in January, manufactured gadgets witnessed a hardening of costs, as per information launched by the Commerce and Industry ministry.
    Food inflation in January stood at (-) 2.8 p.c, towards (-) 1.11 p.c within the earlier month.
    Inflation in greens and potatoes was (-) 20.82 p.c and 22.04 p.c throughout January, whereas within the gasoline and energy basket it was (-) 4.78 p.c.

    In non-food articles, inflation was larger at 4.16 p.c in the course of the month beneath overview.
    The Reserve Bank of India (RBI) in its financial coverage resolution on February 5, saved rates of interest unchanged for the fourth consecutive assembly and stated that the near-term inflation outlook has turned beneficial.
    Meanwhile, retail inflation, based mostly on the patron value index, was at 4.06 p.c in January, information launched final week confirmed.
    ALSO READ | January retail inflation declines to 4.06%, greens develop into cheaper
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  • December wholesale inflation slows to 1.22%

    The wholesale price-based inflation slowed to 1.22 per cent in December on easing meals costs, as per authorities knowledge launched on Thursday.
    The inflation based mostly on Wholesale Price Index (WPI) was 1.55 per cent in November 2020, and a pair of.76 per cent in December 2019.

    The fee of inflation based mostly on WPI Food Index decreased from 4.27 per cent in November 2020, to 0.92 per cent in December 2020, as per the information launched by the Department for Promotion of Industry and Internal Trade.
    It is to be famous right here that retail inflation had additionally dropped sharply to 4.59 per cent in December, primarily as a consequence of declining meals costs.