August WPI rises to 0.16% as food items, manufactured goods get costlier

WPI August Food Index increased to 153.3 from 152.0 in July

Wholesale Price Index (WPI) for August 2020 rose to 0.16 percent after being in the negative zone for four straight months. A jump in prices of food items and manufactured goods led to the rise in August.

July WPI was at -0.58 percent. WPI inflation in June was at -1.81 percent, while for the month of May and April it was -3.37 percent and -1.57 percent, respectively.

“The annual rate of inflation, based on monthly WPI, stood at 0.16 percent (provisional) for the month of August 2020, as compared to 1.17 percent during the corresponding month of the previous year,” the Ministry of Commerce & Industry said in its statement.

Movement of the index for the various commodity groups is as below:

Primary Articles (Weight 22.62 percent)

The index for this major group increased by (1.81 percent) to 146.3 (provisional) in August, 2020 from 143.7 (provisional) for the month of July, 2020.

Prices of Minerals (10.21 percent), Crude Petroleum & Natural Gas (4.72 percent), Non-food Articles (3.06 percent) and Food Articles (0.93 percent) increased as compared to July, 2020.

Fuel & Power (Weight 13.15 percent)

The index for this major group increased by (0.77 percent) to 91.4 (provisional) in August, 2020 from 90.7 (provisional) for the month of July, 2020. Prices of Mineral Oils (1.30 percent) increased as compared to July, 2020. Prices of Coal and Electricity remain unchanged.

Manufactured Products (Weight 64.23 percent)

The index for this major group increased by (0.59 percent) 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 percent)

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 percent in July, 2020 to 4.07 percent in August, 2020.