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1 Dec 2020

December retail inflation touches highest level since July 2014

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CPI inflation for September 2019 was at 3.99%. Index rose 0.55% against August 2019.

author dp
Arjun Parthasarathy

India Inflation Data

Month

CPI(y-o-y %)

Consumer Food Price Index(y-o-y %)

Core CPI(y-o-y %)

Nov, 2019

5.54

10.01

3.4

Dec, 2019

7.35

14

3.75

September 2019 – CPI

CPI inflation for September 2019 was at 3.99%. Index rose 0.55% against August 2019.In September 2018,CPI inflation was at 3.70% while for August 2019 it was at 3.21%.Consumer Food Price Index (CFPI) rose 0.90% on month on month basis and also increased by 5.11% year on year and against 2.99% rise in August 2019 and rose 0.51% in August 2018.Food and beverages prices rose 4.70% against 2.33% in August while Pulses prices spike 8.40% year on year. Vegetables prices rose 15.40%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 0.96% and 4.75% respectively.Fuel and light inflation in September 2019 at -2.18% against -1.70% in August 2019.Pan,tobacco and intoxicants prices rose 4.59% yearly.

The annual rate of inflation for WPI, stood at 0.33% for the month of September 2019 against previous years as compared to 1.08% for the month of August 2019 and 5.22% during the corresponding month of the previous year. The index for Food Articles group declined by 0.4% to 155.3 in September 2019, Food index up down due to lower price of fruits and vegetables and pork (3% each), jowar, bajra and arhar (2% each) and fish-marine, tea and mutton (1% each) and prices of condiments, spices (4%), betel leaves and peas and chawali (3% each), egg and ragi (2% each) and rajma, wheat, barley, urad, fish-inland, beef and buffalo meat, moong, poultry chicken, paddy and maize (1% each) moved up. Index for Fuel and Power-down by 0.5% to 100.2 in September from 100.7 in August 2019.

August 2019 – CPI

CPI inflation for August 2019 was at 3.21%. Index rose 0.49% against July 2019.In August 2018,CPI inflation was at 3.69% while for July 2019 it was at 3.15%.Consumer Food Price Index (CFPI) rose 0.91% on month on month basis and also increased by 2.99% year on year and against 2.36% rise in July 2019 and rose 0.29% in August 2018.Food and beverages prices rose 2.33% against 2.37% in June while Pulses prices spike 6.82% year on year. Vegetables prices rose 2.82%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 1.65% and 4.87% respectively.Fuel and light inflation in August 2019 at -1.70% against -0.36% in July 2019.Pan,tobacco and intoxicants prices rose 5% yearly.

The annual rate of inflation for WPI, stood at 1.08% for the month of August 2019 against previous years as compared to 1.08% for the month of July 2019 and 4.62% during the corresponding month of the previous year. The index for Food Articles group rose by 1.4% to 155.9 in June 2019, Food index up rose due to higher prices of betel leaves, condiments & spices and jowar (4% each), ragi, barley, fruits,vegetables and pork (3% each), fish-inland, wheat, arhar, maize and beef and price of hides (raw) and raw rubber (4% each), niger seed (3%), raw cotton (2%) moved down .Index for Fuel and Power down by 0.1% to 100.7 in August 2019 from 100.6 in July 2019.

CPI Vs WPI

July 2019 – CPI

CPI inflation for July 2019 was at 3.15%. Index rose 0.913% against June 2019.In July 2018,CPI inflation was at 4.17% while for June 2019 it was at 3.18%.Consumer Food Price Index (CFPI) rose 1.63% on month on month basis and also increased by 2.36% year on year and against 2.25% rise in June 2019 and rose 1.30% in July 2018.Food and beverages prices rose 2.96% against 2.33% in July while Pulses prices rose 6.94% year on year. Vegetables prices spiked 6.90%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 1.23% and 4.84% respectively.Fuel and light inflation in July 2019 at -0.36% against 2.32% in June 2019.Pan,tobacco and intoxicants prices rose 4.89% yearly.

The annual rate of inflation for WPI, stood at 1.08% for the month of July 2019 against previous years as compared to 2.02% for the month of June 2019 and 5.27% during the corresponding month of the previous year. The index for Food Articles group rose by 1.3% to 153.7 in June 2019, Food index up rose due to higher prices fruits and vegetables (5%), egg, maize and  jowar (4% each), pork (3%), beef and buffalo meat, bajra, wheat and condiments & spices (2% each) and price of fish-marine (7%), tea (6%), betel leaves (5%) down, poultry chicken (3%).Index for Fuel and Power down by 1.5% to 100.6 in July 2019 from 102.1 in June 2019.

June 2019 – CPI

CPI inflation for June 2019 was at 3.18%. Index rose 0.63% against May 2019.In June 2018,CPI inflation was at 4.92% while for May 2019 it was at 3.05%.Consumer Food Price Index (CFPI) rose 1.44% on month on month basis and also increased by 2.17% year on year and against 1.83% rise in May 2019 and rose 2.91% in June 2018.Food and beverages prices rose 2.37% against 2.03% in May while Pulses prices rose 5.68% year on year. Vegetables prices rose 4.66%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 1.52% and 4.84% respectively.Fuel and light inflation in June 2019 at 2.32% against 2.48% in May 2019.Pan,tobacco and intoxicants prices rose 4.11% yearly.

The annual rate of inflation for WPI, stood at 2.02% for the month of June 2019 against previous years as compared to 2.45% for the month of May 2019 and 5.68% during the corresponding month of the previous year. The index for Food Articles group rose by 1.1% to 151.7 in June 2019, Food index up rose due to higher prices of fish-marine (6%), pork, arhar, barley, peas,chawali and moong (4% each), fruits and vegetables and urad (3% each), beef and buffalo meat, masur and maize (2% each) and price of betel leaves (26%), tea (2%) and ragi and poultry chicken (1% each) declined.Index for Fuel and Power down by 1.3% to 102.1 in June 2019 from 103.4 in May 2019.

May 2019 – CPI

CPI inflation for May 2019 was at 3.05%. Index rose 0.57% against April 2019.In May 2018,CPI inflation was at 4.87% while for April 2019 it was at 2.99%.Consumer Food Price Index (CFPI) rose 1.24% on month on month basis and also increased by 1.83% year on year and against 1.10% rise in April 2019 and rose 3.10% in May 2018.Food and beverages prices rose 2.03% against 1.38% in April while Pulses prices rose 2.13% year on year. Vegetables prices spikes 5.46%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 1.80% and 4.82% respectively.Fuel and light inflation in May 2019 at 2.48% against 2.56% in April 2019.Pan,tobacco and intoxicants prices rose 3.93% yearly.

The annual rate of inflation for WPI, stood at 2.45% for the month of May 2019 against previous years as compared to 3.12% for the month of March 2019 and 3.62% during the corresponding month of the previous year. The index for Food Articles group rose by 3.4% to 150.1 in April 2019, Food index up rose due to higher price price of tea (15%), fruits and vegetables (14%), peas,chawali (6%), maize (5%), poultry chicken (4%), arhar, bajra and pork (3% each) and price of egg (6%), betel leaves (4%), barley and wheat (3% each) declined.Index for Fuel and Power down by 0.5% to 102.8 in March 2019 from 103.3 in March 2019.

April 2019 – CPI

CPI inflation for April 2019 was at 2.92%. Index rose 0.50% against March 2019.In April 2018,CPI inflation was at 4.58% while for March 2019 it was at 2.86%.Consumer Food Price Index (CFPI) rose 1.03% on month on month basis and also increased by 1.10% year on year and against 0.30% rise in March 2019 and rose 2.80% in April 2018.Food and beverages prices rose 1.38% against 0.66% in March while Pulses prices fell 0.89% year on year. Vegetables prices grew 2.87%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 2.01% and 4.76% respectively.Fuel and light inflation in April 2019 at 2.56% against 2.42% in March 2019.Pan,tobacco and intoxicants prices rose 4.27% yearly.

The annual rate of inflation for WPI, stood at 3.07% for the month of April 2019 against previous years as compared to 3.12% for the month of March 2019 and 3.62% during the corresponding month of the previous year. The index for Food Articles group rose by 3.4% to 150.1 in April 2019, Food index up rose due to higher price price of tea (15%), fruits and vegetables (14%), peas,chawali (6%), maize (5%), poultry chicken (4%), arhar, bajra and pork (3% each) and price of egg (6%), betel leaves (4%), barley and wheat (3% each) declined.Index for Fuel and Power down by 0.5% to 102.8 in March 2019 from 103.3 in March 2019.

March  2019 – CPI

CPI inflation for March 2019 was at 2.86%. Index rose 0.36% against February 2019.In March 2018,CPI inflation was at 4.28% while for February  2019 it was at 2.57%.Consumer Food Price Index (CFPI) rose 0.59% on month on month basis and also increased by 0.30% year on year and against 0.73% decline in February 2019 and rose 2.81% in March 2018.Food and beverages prices rose 0.66% against 0.07% decline in February while Pulses prices fell 2.25% year on year. Vegetables prices degrew 1.49%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 2.59% and 4.93% respectively.Fuel and light inflation in March 2019 at 2.42% against 1.24% in February 2019.Pan,tobacco and intoxicants prices rose 4.61% yearly.

The annual rate of inflation for WPI, stood at 3.18% for the month of March 2019 against previous years as compared to 2.93% for the month of February 2019 and 2.74% during the corresponding month of the previous year. The index for Food Articles group rose by 0.9% to 145.1 in March 2019, Food index up rose due to higher price of of peas,chawali (7%), maize and jowar (3% each), fruits  and vegetables (6%) and price of fish-marine (6%), egg (5%), gram (3%), mutton, urad and condiments & spices (2% each) declined.Index for Fuel and Power rose by 2.3% to 103.3 in March 2019 from 101 in February 2019.

February  2019 – CPI

CPI inflation for February 2019 was at 2.57%. Index rose 0.21% against January 2019.In February 2018,CPI inflation was at 4.44% while for January 2019 it was at 1.97%.Consumer Food Price Index (CFPI) rose 0.15% on month on month basis and also decreased by 0.66% year on year and against 2.24% decline in January 2019 and 3.26% in February 2018.Food and beverages prices declined 0.07% against 1.29% decline in January while Pulses prices fell 3.82% year on year. Vegetables prices degrew 7.69%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 2.73% and 5.10% respectively.Fuel and light inflation in February 2019 at 1.24% against 2.20% in January 2019.Pan,tobacco and intoxicants prices rose 5.49% yearly.

The annual rate of inflation for WPI, stood at 2.93% for the month of February 2019 against previous years as compared to 2.76% for the month of January 2019 and 2.74% during the corresponding month of the previous year. The index for Food Articles group declined by 0.2% to 143.8 in February 2019, Food index up declined due to lower price of of peas,chawali (7%), tea (5%), fruits  and vegetables (3%) and condiments and spices, mutton and gram (1% each).Index for Fuel and Power rose by 1.7% to 101 in February 2019 from 99.3 in January 2019.

January 2019 – CPI

CPI inflation for January 2019 was at 2.05%. Index declined 0.29% against December 2018. In January 2018,CPI inflation was at 5.07% while for December 2018 it was at 2.11%.Consumer Food Price Index (CFPI) declined 0.66% on month on month basis and also decreased by 2.17% year on year and against 2.65% decline in December 2018 and 4.70% in January 2018.Food and beverages prices declined 1.29% against 1.49% decline in December while Pulses prices fell 5.50% year on year. Vegetables prices degrew 13.32%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 2.95% and 5.20% respectively.Fuel and light inflation in January 2019 at 2.20% against 4.54% in December 2018 .Pan,tobacco and intoxicants prices rose 5.62% yearly.

The annual rate of inflation for WPI, stood at 2.76% for the month of January 2019 against previous years as compared to 3.80% for the month of December 2018 and 3.02% during the corresponding month of the previous year. The index for Food Articles group rose by 0.1% to 144.1 in January 2019,Food index up declined rose to higher price of betel leaves (13%), maize and fish-marine (6% each), ragi (5%), bajra and egg (4% each), coffee, arhar and barley (3% each), moong and masur (2% each).Index for Fuel and Power declined by 4.1% to 99.3 in January 2019 from 103.5 in December 2018.

December 2018 – CPI

CPI inflation for December 2018 was at 2.19%. Index declined 0.43% against November 2018. In December 2017, CPI inflation was at 5.21% while for November 2018 it was at 2.33%.Consumer Food Price Index (CFPI) declined 1.16% on month on month basis and also decreased by 2.51% year on year and against 2.61% decline in November 2018 and 4.96% in December 2017.Food and beverages prices declined 1.49% against 1.69% decline in November while Pulses prices fell 7.13% year on year. Vegetables prices degrew 16.14%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 3.52% and 5.32% respectively.Fuel and light inflation in December 2018 at 4.54% against 7.39% in November 2018 .Pan,tobacco and intoxicants prices rose 5.77% yearly.

The annual rate of inflation for WPI, stood at 3.80% for the month of December 2018 against previous years as compared to 4.64% for the month of November 2018 and 3.58% during the corresponding month of the previous year. The index for Food Articles group declined by 1.4% to 144 in December 2018, Food index up declined due to lower price of fruits and vegetables (8%), peas and chawali (7%), condiments and spices (2%).Index for Fuel and Power declined by 5.9% to 103.5 in December 2018 from 110 in November 2018.

November 2018- CPI

CPI inflation for November 2018 was at 2.33%. Index rose 0.07% against October 2018. In November 2017, CPI inflation was at 3.38% while for October 2018 it was at 3.38%.Consumer Food Price Index (CFPI) declined 0.29% on month on month basis and also decreased by 2.61% year on year and against 0.86% decline in October 2018 and 4.35% in November 2017.Food and beverages prices declined 1.69% against 0.14 decline % in October while Pulses prices fell 9.22% year on year. Vegetables prices degrew 15.59%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 3.53% and 5.99% respectively.Fuel and light inflation in November 2018 at 7.39% against 8.55% in October 2018 .Pan,tobacco and intoxicants prices rose 6.14% yearly.

The annual rate of inflation for WPI, stood at 4.64% for the month of November 2018 against previous years as compared to 5.28% for the month of October 2018 and 4.02% during the corresponding month of the previous year. The index for Food Articles group rose by 0.2% to 146.1 in November 2018, Food index up due to higher prices of peas and chawali (22%), jowar (10%),bajra (9%) however prices mutton and fruits, vegetables (2% each), ragi (1%) declined.Index for Fuel and Power declined by 1% to 110 in November 2018 from 111.1 in October 2018.

October 2018- CPI

CPI inflation for October 2018 was at 3.31%. Index rose 0.29% against September 2018. In October 2017, CPI inflation was at 3.58% while for September 2018 it was at 3.70%.Consumer Food Price Index (CFPI) declined 0.50% on month on month basis and also decreased by 0.86% year on year and against 0.51% rise in September 2018 and 1.90% in October 2017.Food and beverages prices declined 0.24% against 1.08 rise % in September while Pulses prices fell 10.28% year on year. Vegetables prices degrew 8.06%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 3.55% and 6.55% respectively.Fuel and light inflation remains high in October 2018 at 8.55% against 8.47% in September 2018 . Pan,tobacco and intoxicants prices rose 6.13% yearly.

The annual rate of inflation for WPI, stood at 5.28% for the month of October 2018 against previous years as compared to 5.13% for the month of September 2018 and 3.68% during the corresponding month of the previous year. The index for Food Articles group rose by 0.9% to 145.8 in October 2018, Food index had gone up due to higher prices of peas and chawali (6%), bajra (5%) however prices of betel leaves (3%), tea and fish-marine (2% each),  declined.Index for Fuel and Power rose by 3.6% to 111.1 in October 2018 from 107.2 in September 2018.

September 2018- CPI

CPI inflation for September 2018 was at 3.77%. Index declined 0.07% against August 2018. In September 2017, CPI inflation was at 3.28% while for August 2018 it was at 3.69%.Consumer Food Price Index (CFPI) declined 1.14% on month on month basis and increased by 0.51% year on year and against 0.25% rise in August 2018 and 1.25% in September 2017.Food and beverages prices rose 1.08% against 0.85% in August while Pulses prices fell 8.58% year on year. Vegetables prices degrew 4.15%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.64% and 7.07% respectively.Fuel and light inflation remains high in September 2018 at 8.47% against August 2018 reading. Pan,tobacco and intoxicants prices rose 5.57% yearly.

The annual rate of inflation for WPI, stood at 5.13% for the month of September 2018 against previous years as compared to 4.53% for the month of August 2018 and 3.14% during the corresponding month of the previous year. The index for Food Articles group down by 0.2% to 144.5 in September 2018, Food index down due to lower prices of fish marine (12%), egg and urad (3% each) however prices of betel leaves (18%), tea and pork (4% each),  buffalo meat and bajra (3% each) rose.Index for Fuel and Power rose by 2.2% to 107.2 in September 2018 from 104.9 in August 2018.

August 2018- CPI

CPI inflation for August 2018 was at 3.69%. Index rose 0.43% against July 2018. In August 2017, CPI inflation was at 3.28% while for July 2018 it was at 4.17%.Consumer Food Price Index (CFPI) increased 0.29% on month on month basis and increased by 0.29% year on year and against 1.30% rise in July 2018 and 1.52% in August 2017.Food and beverages prices rose 0.85% against 1.73% in July while Pulses prices fell 7.76% year on year. Vegetables prices degrew 7%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.88% and 7.59% respectively.Fuel and light inflation rose 51 bps in August 2018 at 8.47% against July 2018 reading. Pan,tobacco and intoxicants prices rose 5.34% yearly.

The annual rate of inflation for WPI, stood at 4.53% for the month of August 2018 against previous years as compared to 5.09% for the month of July 2018 and 3.24% during the corresponding month of the previous year. The index for Food Articles group rose by 0.1% to 144.8 in August 2018, Food index rose due to higher prices of gram (6%), moong, ragi and bajra (4% each) however prices of egg (6%), poultry chicken (5%), fishinland (3%) declined.Index for Fuel and Power rose by 0.5% to 104.9  in August 2018 from 104.4 in July 2018.

July 2018- CPI

CPI inflation for July 2018 was at 4.17%. Index rose 0.94% against June 2018. In July 2017, CPI inflation was at 2.36% while for June 2018 it was at 4.92%.Consumer Food Price Index (CFPI) increased 1.59% on month on month basis and increased by 1.37% year on year and against 2.91% rise in June 2018 and -0.36% in July 2017.Food and beverages prices rose 1.73% against 3.18% in June while Pulses prices fell  8.91% year on year. Vegetables prices degrew 2.19%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 5.28% and 8.30% respectively.Fuel and light inflation rose 82 bps in July 2018 at 7.96% against June 2018 reading. Pan,tobacco and intoxicants prices rose 6.34% yearly.

The annual rate of inflation for WPI, stood at 5.09% for the month of July 2018 against previous years as compared to 5.77% for the month of June 2018 and 1.88% during the corresponding month of the previous year. The index for Food Articles group rose by 2.1% to 144.7 in July 2018, Food index rose due to higher prices of peas and chawali (8%), fruit and vegetables (7%), gram (7% each).Index for Fuel and Power rose by 0.3% to 104.4  in July 2018 from 104.1 in June 2018.

June 2018- CPI

CPI inflation for June 2018 was at 5.0%. Index rose 0.58% against May 2018. In June 2017, CPI inflation was at 1.46% while for May 2018 it was at 4.87%.Consumer Food Price Index (CFPI) increased 1.10% on month on month basis and increased by 2.91% year on year and against 3.10% rise in May 2018 and -2.12% in June 2017.Food and beverages prices rose 3.18% against 3.37% in May while Pulses prices fell  10.87% year on year. Vegetables prices rose 7.80%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 5.67% and 8.45% respectively.Fuel and light inflation rose 134 bps in June 2018 at 7.14% against May 2018 reading. Pan,tobacco and intoxicants prices rose 8.05% yearly.

The annual rate of inflation for WPI, stood at 5.77% for the month of June 2018 against previous years as compared to 4.43% for the month of May 2018 and 0.90% during the corresponding month of the previous year. The index for Food Articles group rose by 1.1% to 141.7 in June 2018, Food index rose due to higher prices of egg (5%), fruit and vegetables (4%), maize and fish-marine (3% each).Index for Fuel and Power rose by 3% to 104.1  in June 2018 from 101.1 in May 2018.

May 2018- CPI

CPI inflation for May 2018 was at 4.87%. Index rose 0.39% against April 2018. In May 2017, CPI inflation was at 2.18% while for April 2018 it was at 4.58%.Consumer Food Price Index (CFPI) increased 0.52% on month on month basis and increased by 3.10% year on year and against 2.80% rise in April 2018 and -1.05% in May 2017. Food and beverages prices rose 3.37% against 3.00% in April while Pulses prices fell  11.57% year on year. Vegetables prices rose 8.04%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 5.47% and 8.40% respectively.Fuel and light inflation rose 56 bps in May 2018 at 5.80% against April 2018 reading. Pan,tobacco and intoxicants prices rose 8.00% yearly.

The annual rate of inflation for WPI, stood at 4.43% for the month of May 2018 against previous years as compared to 3.18% for the month of April 2018 and 2.26% during the corresponding month of the previous year. The index for Food Articles group rose by 0.2% to 140.1 in May 2018, Food index rose due to higher prices of fish-marine (8%), poultry chicken (4%), egg and peas and chawali (3% each).Index for Fuel and Power rose by 2.2% to 101.1 in May 2018 from 98.9 in April 2018.

April 2018- CPI

CPI inflation for April 2018 was at 4.58%. Index rose 0.44% against March 2018. In April 2017, CPI inflation was at 2.99% while for March 2018 it was at 4.28%.Consumer Food Price Index (CFPI) increased 0.22% on month on month basis and increased by 2.80% year on year and against 2.81% rise in March 2018 and 0.61% rise in April 2017. Food and beverages prices rose 3.00% against 3.01% in March while Pulses prices fell  12.35% year on year. Vegetables prices rose 7.29%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 5.11% and 8.50% respectively.Fuel and light inflation declined 49 bps in March 2018 at 5.24% against April 2018 reading. Pan,tobacco and intoxicants prices rose 7.91% yearly.

The annual rate of inflation for WPI, stood at 3.18% for the month of April  2018 against previous years as compared to 2.47% for the month of March 2018 and 3.85% during the corresponding month of the previous year. The index for Food Articles group rose by 1.9% to 139.8 in April 2018, Food index rose due to higher prices of fruits,vegetables(8%),tea (18%),peas (13%).Index for Fuel and Power rose by 0.9% to 98.9 in April 2018 from 98 in March 2018.

CPI Vs WPI

March 2018- CPI

CPI inflation for March 2018 was at 4.28%. Index rose 0.07% against February 2018. In March 2017, CPI inflation was at 3.89% while for February 2018 it was at 4.44%.Consumer Food Price Index (CFPI) decreased 0.44% on month on month basis and increased by 2.81% year on year and against 3.26% rise in February 2018 and 2.01% rise in March 2017. Food and beverages prices rose 3.01% against 3.38% in February while Pulses prices fell  13.41% year on year. Vegetables prices rose 11.70%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.91% and 8.31% respectively.Fuel and light inflation declined 107 bps in March 2018 at 5.83% against March 2017 reading. Pan,tobacco and intoxicants prices rose 7.79% yearly.

The annual rate of inflation for WPI, stood at 2.47% for the month of March 2018 against previous years as compared to 2.48% for the month of February 2018 and 5.11% during the corresponding month of the previous year. The index for Food Articles group declined by 0.4% to 137.2 in March 2018, Food index decreased due to lower prices of egg (5%).Index for Fuel and Power declined by 0.1% to 98 in March 2018 from 98.1 in February 2018.

February 2018- CPI

CPI inflation for February 2018 was at 4.44%. Index declined 0.37% against January 2018. In February 2017, CPI inflation was at 3.65% while for January 2018 it was at 5.07%.Consumer Food Price Index (CFPI) decreased 1.45% on month on month basis and increased by 3.26% year on year and against 4.70% rise in January 2018 and 2.01% rise in February 2017. Food and beverages prices rose 3.38% against 4.58% in January while Pulses prices fell  17.35% year on year. Vegetables prices rose 17.57%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 5% and 8.28% respectively.Fuel and light inflation declined 93 bps in February 2018 at 6.80% against January 2017 reading. Pan,tobacco and intoxicants prices rose 7.34% yearly.

The annual rate of inflation for WPI, stood at 2.48% for the month of February 2018 against previous years as compared to 2.84% for the month of January 2018 and 5.51% during the corresponding month of the previous year. The index for Food Articles group declined by 2% to 137.8 in February 2018, Food index decreased due to lower prices of fruits and vegetables and gram (9%).Index for Fuel and Power rose by 1.2% to 98.1 in February 2018 from 96.9 in January 2018.

January 2018- CPI

CPI inflation for January 2018 was at 5.07%. Index declined 0.22% against December 2017. In December 2016, CPI inflation was at 3.17% while for December 2017 it was at 5.21%.Consumer Food Price Index (CFPI) decreased 1.15% on month on month basis and increased by 4.70% year on year against 4.96% rise in December 2017 and 0.61% decline in January 2017. Food and beverages prices rose 4.58% against 4.85% in December while Pulses prices fell  20.19% year on year. Vegetables prices rose 26.97%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.94% and 8.33% respectively.Fuel and light inflation declined 17 bps in January 2018 at 7.73% against December 2017 reading. Pan,tobacco and intoxicants prices rose 7.58% yearly.

The annual rate of inflation for WPI, stood at 2.84% for the month of January 2018 against previous years as compared to 3.58% for the month of December 2017 and 4.26% during the corresponding month of the previous year. The index for Food Articles group declined by 2.4% to 140.6  in January 2018, Food index decreased due to lower prices of fruits and vegetables and gram (10%).Index for Fuel and Power rose by 0.4% to 96.9 in January 2018 from 96.5 in December 2017.

December 2017- CPI

CPI inflation for December 2017 was at 5.21%. Index declined 0.29% against November 2017. In December 2016, CPI inflation was at 3.41% while for November 2017 it was at 4.88%.Consumer Food Price Index (CFPI) decreased 0.64% on month on month basis and increased by 4.96% year on year against 4.35% rise in November 2017 and 1.37% rise in December 2016. Food and beverages prices rose 4.85% against 4.41% in November while Pulses prices fell  23.47% year on year. Vegetables prices rose 29.13%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.80% and 8.25% respectively.Fuel and light inflation declined 2 bps in December 2017 at 7.90% against November 2017 reading. Pan,tobacco and intoxicants prices rose 7.76% yearly.

The annual rate of inflation for WPI, stood at 3.58% for the month of December 2017 against previous years as compared to 3.93% for the month of November 2017, 3.68% for the month of October 2017 and 2,10% during the corresponding month of the previous year. The index for Food Articles group declined by 4.32% to 144.1  in December 2017, Food index decreased due to lower prices of fruits and vegetables (14%).Index for Fuel and Power rose by 1.6% to 96.5 in December 2017 from 95 in November 2017.

November 2017- CPI

CPI inflation for November 2017 was at 4.88%. Index rose 1.10% against October 2017. In November 2016, CPI inflation was at 3.63% while for October 2017 it was at 3.58%.Consumer Food Price Index (CFPI) rose 1.58% on month on month basis and increased by 4.42% year on year against 1.90% rise in October 2017 and 2.03% rise in November 2016. Food and beverages prices rose 4.41% against 2.26% in October while Pulses prices fell  23.53% year on year. Vegetables prices rose 22.42%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen by 4.96% and 7.36% respectively.Fuel and light inflation rose 156 bps in November 2017 at 7.92% against October 2017 reading. Pan,tobacco and intoxicants prices rose 7.75% yearly.

October 2017- CPI

CPI inflation for October 2017 was at 3.58%. Index rose 0.67% against September 2017. In October 2016, CPI inflation was at 4.20% while for September 2017 it was at 3.28%.Consumer Food Price Index (CFPI) rose 0.87% on month on month basis and increased by 1.90% year on year against 1.25% fall in September 2017 and 3.32% rise in October 2016. Food and beverages prices rose 2.26% against 1.76% in September while Pulses prices fell  23.13% year on year. Vegetables prices rose 7.47%, weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen to 4.76% and 6.68% respectively.Fuel and light inflation rose 80 bps in October 2017 to 6.36% against September 2017 reading. Pan,tobacco and intoxicants prices rose 6.91% yearly.

October 2017- WPI

The annual rate of inflation, for WPI, stood at 3.59% for the month of October 2017 (over October 2016) as compared to 2.60% for the month of September 2017, 3.24% for the month of August 2017 and 1.27% during the corresponding month of the previous year. The index for Food Articles group rose by 2.2 percent to 148 in October 2017 from 144.8 in September 2017, Food index increased due to higher prices of fruits and vegetables (9%).Index for Fuel and Power rose by 3.1 percent to 93.5 in October 2017 from 90.7 in September 2017,The price of LPG and petroleum coke rose by 9% and 8% respectively.

September 2017- CPI

CPI Vs WPI

CPI inflation for September 2017 was at 3.28%. Index declined 0.15% against August 2017. In September 2016 CPI inflation was at 4.39% while for August 2017 it was at 3.28%.Consumer Food Price Index (CFPI) declined 1.36% on month on month basis and increased by 1.25% year on year against 1.52% fall in August 2017 and 3.96% rise in September 2016. Food and beverages prices rose 1.76% against 1.96% in August while Pulses prices fell  22.51% year on year. Vegetables prices rose 3.92%,its weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation have risen to 4.63% and 6.10% respectively.Fuel and light inflation rose 62 bps in September 2017 to 5.56% against August 2017 reading.Pan,tobacco and intoxicants prices rose 6.95% yearly.

August 2017- CPI

CPI inflation for August 2017 was at 3.36%. Index rose 0.97% against July 2017. In August 2016 CPI inflation was at 5.05% while for July 2017 it was at 2.36%. Consumer Food Price Index (CFPI) rose 1.30% on month on month basis and increased by 1.52% year on year against 0.36% fall in July 2017 and 5.91% rise in August 2016. Food and beverages prices rose 1.96% against 0.43% in July while Pulses prices fell  24.43% year on year. Vegetables prices rose 6.16%,its weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky at 4.58% and 5.58% respectively.Fuel and light inflation rose 8 bps in August 2017 to 4.94% against July 2017 reading.Pan, tobacco and intoxicants prices rose 6.85% yearly.

August 2017- WPI

The annual rate of inflation, for WPI, stood at 3.24% for the month of August 2017 (over August,2016) as compared to 1.88% for the month of July 2017, 0.90% for the month of June 2017  and 1.09% during the corresponding month of the previous year. The index for Food Articles group rose by 2.17 percent to 150.8 in August 2017 from 147.6 in July 2017, Food index increased due to higher prices of fruits (7.79%) and vegetables (8.63%) etc.Index for Fuel and Power rose by 0.9 percent to 89.2 in August 2017 from 88.4 in July 2017,The price of LPG (4.55%) and bitumen(1%) and petroleum coke (1% ) declined.

July 2017- CPI

CPI inflatiom for July 2017 was at 2.36%. Index rose 1.67% on a month on month basis. In July 2016 CPI inflation was at 6.07% while for June 2017 it was at 1.46%. Consumer Food Price Index (CFPI) rose 3.21% on month on month basis and declined by 0.29% year on year against 2.12%  fall in June 2017 and 8.35% rise in July 2016. Food and beverages prices rose 0.43% against decline of 1.17% in June while Vegetables and Pulses prices fell 3.57% and 24.75% respectively year on year. Vegetables weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky at 4.22% and 4.98% respectively.Fuel and light  inflation rose 22 bps in July 2017 to 4.86% against June 2017 reading.

July 2017- WPI

The annual rate of inflation, for WPI, stood at 1.88% for the month of July 2017 (over July ,2016) as compared to 0.90% for the month of June 2017, 2.26% for the month of May 2017  and 0.63% during the corresponding month of the previous year. The index for Food Articles group rose by 6.19 percent to 147.6 in July 2017 from 139 in June 2017, Food index increased due to higher prices of fruits and vegetables, betel leaves etc. Index for Fuel and Power declined by 1.45 percent to 88.4 in July 2017 from 89.7 in June 2017, Prices declined for naphtha & furnace and aviation turbine fuel.

June 2017- CPI

CPI for June 2017 was at 1.54%. Index rose 0.53% on a month on month basis. In June 2016 CPI inflation was at 5.77% while for May 2017 it was at 2.18%. Consumer Food Price Index (CFPI) rose 0.91% on month on month basis and declined by 2.12% year on year against 1.05%  fall in May 2017 and 7.79% rise in June 2016. Food and beverages prices declined 1.17% against 0.22% in May while Vegetables and Pulses price fell 16.53% and 21.92% respectively year on year. Vegetables weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky at 4.17% and 4.70% respectively.Fuel and light  inflation declined 92 bps in June 2017 to 4.54%.

May 2017- CPI

CPI for May 2017 eased to 2.18% from 2.99% in April 2017. Consumer Food Price Index (CFPI) fell 166 bps on month on month basis to (-)1.05 in May 2017 from 0.61 in April 2017. Vegetables and Pulses price fell 13.44% and 19.45% respectively year on year. Sugar and Confectionery prices rose most by 9.84% against May 2016. Fuel and light inflation rose by 546 bps in April 2017 to 129.4 from 122.7 in April 2016. Transport and communication price rise was 3.46%, Education prices rose 4.90% on yearly basis.

Food and Beverage prices declined (-)0.22% on yearly basis, Pan, tobacco and intoxicants prices rose by 6.17% on yearly basis, Clothing and footwear prices rose by 4.41%, Housing prices rose by 4.84%.

May 2017- WPI

The annual rate of inflation, based on monthly WPI, stood at 2.17% for the month of May 2017 (over May,2016) as compared to 3.85% for the month of April 2017 and -0.90% during the corresponding month of the previous year.  Index for Food Articles group declined by 1.2 percent while Index for Fuel and Power declined by 2.1 percent against the previous month due to lower prices of LPG (-12%), bitumen and electricity (-4%).

April 2017- CPI

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) and  WPI (Wholesale Price Index) from 2010=100 to 2012=100

Inflationary effect of implementation of GST and increasing fuel prices could lead to higher CPI in the latter half of fiscal year 2017-18 as per RBI estimates. Risk for CPI to trend higher could be from managing the implementation of the allowances recommended by the 7th pay commission.If the increase in house rent allowance as recommended by the 7th pay committee is implemented, it is expected to impact CPI by an estimated 100bps-150 basis points over a period of 1-1.5 years

CPI for April 2017 eased to 2.99% from 3.89% in March 2017.  Consumer Food Price Index (CFPI) fell 140 bps on month on month basis to 0.61 in April 2017 from 2.01 in March 2017. Vegetables and Pulses price fell 8.59% and 15.94% respectively year on year. Sugar and Confectionery prices rose most by 11.37% against April 2016. Fuel and light inflation rose by 750 bps in April 2017 to 129.8 from 122.3 in March 2017. Transport and communication price rise was 4.01%, Education prices rose 5.32% and Personal care prices rose by 4.23% yearly basis.

Food and Beverage prices rose by 1.21% on yearly basis, Pan, tobacco and intoxicants prices rose by 6.05% on yearly basis, Clothing and footwear prices rose by 4.58%, Housing prices rose by 4.86%, Fuel and Light prices rose by 6.13% and Miscellaneous prices rose by 4.25% on yearly basis.

April 2017- WPI

The annual rate of inflation, based on monthly WPI, stood at 3.85% for the month of April 2017 (over April,2016) as compared to 5.29% for the month of March 2017 and -1.09% during the corresponding month of the previous year.  Index for Food Articles group rose by 0.6 percent to 139.4 from 138.5  for the previous month due to higher prices of beef and buffalo meat (11%), tea (11%). Index for Fuel and Power declined by 1.9 percent to 92.8 from 94.6 for the previous month due to lower prices of naphtha and furnace oil (7% each), aviation turbine fuel (ATF) (5%).

March 2017- CPI

In February 2017, CPI and WPI both trended higher and the WPI-CPI spread rose significantly to 2.9%, highest since  July 2016. Rise in WPI was largely due to rise in fuel & power  and mineral index. As inflation is trending higher and with core inflation sticky at around 5% levels, RBI change in stance from accommodative to neutral will stay.

CPI for February 2017 rose 0.23% on a month on month basis and rose 3.65% year on year, highest level seen since November 2016.In February 2016 CPI inflation was at 5.26% while for January 2017 it was at 3.17%. Consumer Food Price Index (CFPI) fell 0.08% on month on month basis and rose 2.01% year on year against 5.30% in February 2016 and 0.53% in January 2017. Food and beverages prices rose 2.46% against 1.29% in January while Vegetables and Pulses price fell 8.29% and 9.02% respectively year on year Vegetables weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky at 4.38% and 4.90% respectively.Fuel and light  inflation rose 48 bps in February 2017 to 3.90% against previous reading.Timely implementation of GST, waning of high base effect and increasing fuel prices could lead to higher CPI in the latter half of fiscal year 2017-18.

March 2017- WPI

Wholesale Price Index (WPI) annual rate of inflation for April 2017 was at 3.85% year on year as compared to 5.29% for March 2017. The index for Food Articles group rose by 0.6 percent to 139.4 in April 2017 from 138.5 in March 2017, Food index increased due to higher price of Beef and Buffalo meat. Index for Fuel and Power declined by 1.9 percent to 92.8 in April 2017 from 94.6 in March 2017, Prices declined for naphtha & furnace and aviation turbine fuel. 

January 2017- CPI

In January 2017, the WPI-CPI spread rose significantly to 2.08%, which is 6 month high. The spread was 0.02% in December 2016. Spread rose due to base effect and furel index rise.WPI rose while CPI fell leading to rise in spreads. Rise in WPI was largely due to rise in fuel and power index.

CPI for January 2016 declined 0.08% on a month on month basis and rose 3.17% year on year, lowest level seen since November 2014.In January 2016 CPI inflation was at 5.69% while for December 2016 it was at 3.41%. Consumer Food Price Index (CFPI) fell 0.98% on month on month basis and rose 0.53% year on year against 6.85% in January 2016 and 1.37% in December 2016. Vegetables and Pulses price fell 15.62% and 6.62% respectively year on year Vegetables weight in the index is 6.04% and Pulses and products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky at 4.71% and 5.02% respectively.

January 2017- WPI

Wholesale Price Index (WPI) annual rate of inflation for January 2017 was at 5.25% year on year against 3.39% in December 2016. In January 2016 WPI inflation was at -1.07%. Fuel and power prices increased 18.14% in January 2017.

December 2016- CPI

CPI for December 2016 declined 0.61% on a month on month basis and rose 3.41% year on year, lowest level since November 2014.In December 2015 CPI inflation was at 5.61% while for November 2016 it was at 3.63%. Consumer Food Price Index (CFPI) decreased 1.84% on month on month basis and rose 1.37% year on year against 6.40% in December 2015 and 2.03% in November 2016.  Vegetables price fell 14.59% year on year while Pulses that had risen over 100%   saw prices softening to register a 1.57% fall. Vegetables weight in the index is 6.04% and Pulses and Products has 2.38% weight in the index. Clothing, footwear and housing inflation were sticky while fuel and light inflation rose to 3.77% levels in December 2016 against 2.80% in November 2016

December 2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for December  2016 was at 3.39% year on year against 3.15% in November 2016. In December 2015 it was at -1.06%.

November 2016- CPI

As demonetisation has lowered demand for goods and services in the cash economy CPI for November 2016 printed at its lowest levels since November 2014 and the CPI-WPI spread fell significantly to 0.48%, was against 9.01% in September 2015.

CPI for November 2016 declined 0.15% on a month on month basis and rose 3.63% year on year, lowest level in 2 years . In November 2015 CPI inflation was at 5.41% while for October 2016 it was at 4.20%. Consumer Food Price Index (CFPI) decreased 0.80% on month on month basis and rose 2.11% year on year against 6.07% in November 2015 and 3.32% in October 2016.Yearly vegetables price degrew 10.29% while Sugar and Confectionery rose 22.40%.Vegetables weight in index is 6.04% while Sugar and Confectionery has 1.36% weights in index.

November 2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for November 2016 was at 3.15% year on year against 3.39% in October 2016. In November 2015 it was at -2.04%.

CPI-WPI Inflation spread

October 2016- CPI

Demonetisation has lowered inflation expectations as demand for goods and services in the cash economy could fall. CPI inflation fell to a 14 months low in October 2016 on the back of fall in food prices.

CPI for October 2016 rose 0.38% on a month on month basis and 4.20% year on year, lowest level since August last year. In October 2015 CPI inflation was at 5.00% while for September 2016 it was at 4.39%. Consumer Food Price Index (CFPI) increased 0.22% on month on month basis and 3.32% year on year against 5.25% in October 2015 and 3.96% in September 2016.RBI has an inflation target of 5% for March 2017, the October 2016 CPI is 80 bps below the target.

October 2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for October 2016 was at 3.39% year on year against 3.57% in September 2016. In October 2015 it was at -3.81%.

September 2016- CPI

For September 2016 CPI printed at 130.8,declined -0.23% on a month on month basis and increased 4.31% year on year,lowest since August 2015 . In September 2015 CPI inflation was at 4.41% while for August 2016 it was at 5.05%. Consumer Food Price Index (CFPI) decreased -1.16% on month on month basis and increased 3.88% year on year against 3.88% in September 2015 and 5.91% in August 2016.RBI has an inflation target of 5% for March 2017, the September 2016 CPI reading is 69 bps below the target, which is positive for policy accommodation.As monsoon has been normal,crop production may not be affected which in turn can mean CPI inflation can trend lower going ahead.

September 2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for September 2016 was at 3.57% year on year against 3.74% in August 2016. In September 2015 it was at -4.59%.For June 2016 WPI inflation rate is revised t0 2.12% from 1.62% previously

August 2016-CPI

CPI reading for August 2016, while positive for policy accommodation does not increase chances of a rate cut by the RBI in its 4th October 2016 policy review. The primary concern for RBI will be Fed’s rate outlook in its September 2016 meet and the reaction of global markets to Fed rate hikes if any.

For August 2016 CPI (Consumer Price Index) remained unchanged on a month on month basis and increased 5.05% year on year, a five month low. In August 2015 CPI inflation was at 3.74% while for July 2016 it was at 6.07%. Consumer Food Price Index (CFPI) decreased -0.58% on month on month basis and increased 5.91% year on year against 2.20% in Ausgut 2015 and 8.35% in July 2016. August CPI inflation rate is lowest since April 2016 on account of controlled consumer food prices.RBI has an inflation target of 5% for March 2017 and August 2016 CPI reading is closer to the target, which is positive for policy accommodation. Core inflation has stayed at levels of below 5% for August indication no real pricing pressures in the economy.

August  2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for August 2016 was at 3.74% year on year against 3.55% in July 2016. In August 2015 it was at -5.06%.For June 2016 WPI inflation rate is revised t0 2.12% from 1.62% previously

July 2016-CPI

For July 2016 CPI (Consumer Price Index) increased 0.77% on a month on month basis and by 6.07% year on year. In July 2015 CPI inflation was at 3.69% while for June 2016 it was at 5.77%. Consumer Food Price Index (CFPI) rose 1.31% on month on month basis and 8.35% year on year against 2.15% in July 2015 and 7.79% in June 2016. CPI inflation rose on the back of higher food prices. August CPI inflation rate is lowest since April 2016 on account of controlled consumer food prices.

July 2016- WPI

Wholesale Price Index (WPI) annual rate of inflation for July 2016 printed at 3.55% year on year against 1.62% in June 2016. WPI turned positive in May 2016 after 16 months of negative growth.

CSO (Central Statistics Office) in February 2015 revised the Base Year of CPI series from 2010=100 to 2012=100. The weighting diagrams have based on the results of CES ( Consumer Expenditure Survey) (2011-12).

CPI (Consumer Price Index) Components weights:

Food, Beverages and Tobacco – 45.86%

Fuel and Light – 6.84%

Clothing, bedding and footwear- 6.53%

Housing – 10.07%

Miscellaneous (Education, amusements, Transport) – 28.32%

CPI for rural and urban is calculated separately and then combined to get general CPI index reading.

Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption. CPI numbers are  used as a macroeconomic indicator of inflation, as a tool by governments and central banks for inflation targeting and for monitoring price stability, and as deflators in the national accounts. CPI is also used for indexing dearness allowance to employees for increase in prices.

Monthly price data are collected from 1114 markets in 310 selected towns by the Field Operations Division of NSSO and the specified State/UT Directorates of Economics and Statistics and from 1181 selected villages by the Department of Posts.  The prices are being collected through Web Portals.

What is the criteria of Selection of components:

(i) to include all PDS items;

(ii) to include all items accounting for 1% or more of total expenditure at sub-group level;

(iii) to include all items accounting for more than specified percentage of total expenditure of all consumption items: Food, Housing & Miscellaneous > 0.04% ;Fuel > 0.03% ;Clothing > 0.02%

(iv) to include all items for which more than 75% households have reported consumption.

Compilation of Indices:

Compilation of CPI  generally consists of two stages (i) calculation of price indices for elementary aggregates (item level indices) and (ii) the aggregation of  elementary price indices to higher level indices using the weights associated with each level. Laspeyres formula is used for aggregation of indices.

Lasperyre s formula, which has a fixed base- year weighting diagram operative through the entire life span of the series. The formula used is:
I = sum{(Ii x Wi)}/ sum(Wi)

Where
I= Index Number prices of a sub- group/group/major group/All
commodities Wi= The weight assigned to the ith item/sub- group/group/major group
Ii= Index of the ith item/sub- group/group/major group

Price relatives are calculated as the percentage ratios by dividing the current price by the base period price and multiplying the quotient by 100. The commodity index is arrived at as the simple arithmetic average of the price relatives of all the varieties included under that commodity.

WPI 

The price index is an indicator of the average price movement over time of a fixed basket of goods and services. The constitution of the basket of goods and services is done keeping in to consideration whether the changes are to be measured in retail, wholesale or producer prices etc. The basket will also vary for economy- wide, regional, or sector specific series.The Wholesale Price Index (WPI) number is a measure of wholesale price movement for the economy.

WPI (Wholesale price Index) Components weights:

Primary Articles (Food articles, minerals, non-food articles) – 20.12%

Fuel and Power – 14.91%

Manufactured products – 64.97%

The New Series with 2004- 05 as the base has 676 items in the commodity basket. There has been a significant increase in number of items and price quotations for each item, particularly in the manufacturing segment for  better reflect the structural shifts and to make WPI more broad based.Total 5482 price quotations are collected from various region.

Compilation of Indices:

Compilation of WPI  generally consists of two stages (i) calculation of price indices for elementary aggregates (item level indices) and (ii) the aggregation of  elementary price indices to higher level indices using the weights associated with each level. Laspeyres formula is used for aggregation of indices.

Lasperyre s formula, which has a fixed base- year weighting diagram operative through the entire life span of the series. The formula used is:
I = sum{(Ii x Wi)}/ sum(Wi)

Where
I= Index Number prices of a sub- group/group/major group/All
commodities Wi= The weight assigned to the ith item/sub- group/group/major group
Ii= Index of the ith item/sub- group/group/major group

Price relatives are calculated as the percentage ratios by dividing the current price by the base period price and multiplying the quotient by 100. The commodity index is arrived at as the simple arithmetic average of the price relatives of all the varieties included under that commodity.

International Practice:

The WPI has been replaced in most countries by Producer Price Index (PPI) due to the broader coverage provided by the PPI in terms of products and industries and the conceptual concordance between the PPI and system the national account.Many of the OECD countries measure inflation based on Producer Price Index (PPI) while some others use only WPI (Japan, Australia, Greece, Norway and Turkey) and a mix of both.For policy formulation and analytical purpose, measurement of price changes from producers and consumers prospective is considered  more relevant and  superior compared to one at wholesale level.

 

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