WPI inflation slows down to 5.7 %, manufacturing goods cost decline

New Delhi, Apr 17 (KNN) The wholesale price index (WPI) inflation cooled to 5.70 per cent as the Manufacturing and Fuels registered lower inflation in March after it hit a 3-year high trend of 6.55% in February.

Manufactured products that weight 65% in the index, the index for this major group declined by 0.1 per cent to 158.7 from 158.8 from the previous month.

In  the manufactured food items, ‘food products’ declined from 1.2 per cent to 192.1 (provisional) from 194.5(provisional from the previous month. This is the result of lower price of wheat flour (7%) tea leaf (blended) (8%), processed prawn (7%), maida and copra oil (6% each), coffee power, tea left(unblended) and suji (rawa) (5% each), cotton seed oil(4%), rice bran oil and mustard rapeseed oil (2% each) , gola (cattle feed) (3%) and sunflower oil, tea dust (unblended), tea dust (blended) and mixed spices (1% each).

Meanwhile the price of powdered milk (2%) and ghee, gur, gingelly oil and groundnut oil moved up by 1% each.

The index for ‘Beverages, Tobacco and Tobacco products group rose by 0.1 per cent to 221.7(provisional) from 221.5(provisional)  for the previous month due to the increase in price of dried tobacco by 2 per cent.

Wood and wood products group registered a rise of 0.7 per cent to 193.2(provisional)  from 191.8 (provisional)  for the previous month because of the rise in plywood and fibre board prices by 1 per cent.

The textile group rose by 0.2 per cent to 142.9 (provisional) from 142.6(provisional) for the previous month due to 5 per cent hike in price of tyre cord fabric.

The index for Paper and paper products group went up by 0.7 per cent to 158.8 (provisional) from 157.7 (provisional) due to higher price of paper rolls, kraft paper and bags, paper cartons/boxes and printing and writing paper. Whereas the price of cardboard declined by 2 per cent.

The Chemicals and chemical products index rose by 0.5 per cent. The index for Machinery and machinery tools group declined by 0.1 per cent and the index for Transport, Equipment and Parts group went up by 0.2 per cent.

Earlier this month, the RBI had left key policy rate unchanged at 6.25 per cent for the third review in a row stating upside risks to inflation. For 2017-18, the RBI projected retail inflation to an average of 4.5 per cent in the first half and 5 per cent in the second half. (KNN/ DA)