WPI inflation rises to two year high at 3.5 per cent, Industrial inflation climbs to 1.8 percent

New Delhi, Aug 16 (KNN) Wholesale price index (WPI) inflation climbs to a near two-year high at 3.55 percent in July 2016 as against 1.62 percent of the previous month. Industrial inflation also climbed to 1.8 percent from 1.17 percent during the same period.

As per the official data released today, the prices of manufactured products, which makes up nearly 65% of the index, continued to inch up for the fifth straight month, rising by 1.82% in July. It had risen by 1.17% in the previous month.

The manufactured food products sub-category, which includes sugar and edible oils, registered a significant rise of 10.19% up from 8.35% in the previous month. This was mainly due to sugar prices, which rose by 32.33% as against 26.09% in the previous month, on the back of expected production shortages.

The index for ‘Textiles’ group rose by 0.4 percent to 141.5 (provisional) from 140.9 (provisional) for the previous month due to higher price of jute sacking cloth and cotton yarn (2% each) and man-made fabric (1%).  However, the price of      gunny and hessian cloth (2%) declined.

The index for ‘Leather & Leather Products’ group rose by 0.5 percent to 146.3 (provisional) from 145.5 (provisional) for the previous month due to higher price of leathers (1%).

The index for ‘Rubber & Plastic Products’ group rose by 0.3 percent to 146.5 (provisional) from 146.1 (provisional) for the previous month due to higher price of tubes (5%) and rubber products (2%).

Prices for fuel and power continued to remain depressed but fell at a slower pace in July, going down by 1% as compared to a 3.62% fall in June and 6.14% in May.

The index for ‘Non-Metallic Mineral Products’ group rose by  0.5 percent to 178.6 (provisional) from 177.7 (provisional) for the previous month due to higher price of marbles (4%) and glass bottles & bottleware, grey cement and lime (1% each).  However, the price of railway sleeper and asbestos corrugated sheet (2% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 0.6 percent to 153.0 (provisional) from 153.9 (provisional) for the previous month due to lower price of pig iron and melting scrap (5% each), billets (4%), wire rods   (3%), rounds, angles, CRC, sponge iron, ferro manganese, pencil  ingots, rebars, joist & beams, HRC and plates (2% each) and gp/gc sheets, pipes/tubes/rods/strips and sheets (1% each).  However, the price of silver (6%), steel rods (5%),     lead and steel structures (4% each), gold & gold ornaments (2%) and steel castings, pressure cooker, metal containers and zinc (1% each) moved up. (KNN Bureau)