by admin | May 25, 2021 | Commodities, Commodities News, Economy, Markets, News
New Delhi : A major spurt in food and fuel prices in the country pushed the wholesale price index (WPI) for May to 4.43 percent, to nearly double over the 2.26 percent registered in May last year and higher than the 3.18 percent recorded in April, 2018, Commerce Ministry data showed on Thursday.
Earlier this week, Central Statistics Office data showed that the consumer price index (CPI), or retail inflation, in May had touched 4.87 percent.
Citing risks to inflation mainly from rising global crude prices, the Reserve Bank of India (RBI) last week raised its key lending rate by 25 basis points to 6.25 percent for the first time in over four years. The RBI has a median retail inflation target rate of 4 per cent.
The WPI Food Index, consisting of ‘Food Articles’ from Pri’ary Articles group and ‘Food Prod‘ct’ from Man’factured Products group, increased from 0.67 per cent in April 2018, to 1.12 per cent last month.
Expenses during the month under consideration on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, rose by 3.16 per cent, from a fall of
(-)1.71 per cent in May 2017.
Among primary articles, food, which has a weightage of 15.26 per cent in the index, edged up last month by 1.60 per cent from a deceleration of (-)2.13 per cent reported for the same month last year.
The cost of fuel and power, which commands a 13.15 per cent weightage in the index, increased at a fast pace of 11.22 per cent during the month in review, from a growth of 7.85 per cent in April 2018.
Reacting to the WPI numbers, industry body Assocham urged policymakers to keep a check on petrol and diesel prices as these could “significantly impact import bills which may subsequently have an effect on exchange rates.”
“Besides, it might also negatively impact input prices for the industry which has already started feeling the pressure on its profitability,” Assocham Secretary General D.S. Rawat said in a statement.
“Rising crude prices would not only affect headline inflation but would also put pressure on price levels as the twin deficit goes up, thereby impacting government’s plan to’increase rural spending and minimum support price for farmers ahead of general elections next year as it would exacerbate price pressures, and is likely to blow out the fiscal deficit target,” he added.
—IANS
by admin | May 25, 2021 | Business, Commodities, Commodities News, SMEs
New Delhi : An exponential rise in food and fuel prices especially those of onions and diesel pushed India’s annual rate of inflation based on wholesale prices higher to 3.93 per cent for November, official data showed on Thursday.
According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI) accelerated to 3.93 per cent in November from 3.59 per cent during October and 1.82 per cent during the corresponding month of 2016.
Reacting to the data, India Inc. said the rise in inflation was mainly driven by vegetables, onions, eggs, meat and fish, minerals, petrol and high speed diesel due to a decline in production and the resultant fall in the supply side.
On a sequential basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, edged higher by 5.28 per cent, from an increase of 3.33 per cent in October.
The prices of food articles rose by 6.06 per cent from a rise of 4.30 per cent in October.
In terms of food prices, the YoY (Year-on-Year) wholesale inflation rate for onions was higher by 178.19 per cent, whereas for potatoes it plunged by (-)40.73 per cent.
In contrast, the overall vegetable prices in November rose by 59.80 per cent, against a fall of (-)17.31 per cent in the same month a year ago.
As per data, wheat became cheaper by (-)5.75 per cent on YoY basis and the prices of pulses came down by (-)35.48 per cent, but paddy became dearer by 2.90 per cent.
On the other hand, protein-based food items such as eggs, meat and fish became expensive by 4.73 per cent during the month under review.
Prices of the other major group under the WPI, manufactured products, which comprise nearly 64.23 per cent of the index, recorded a 2.61 per cent rise.
The sub-category of manufactured food products registered a rise of 0.47 per cent.
Similarly, fuel and power prices accelerated by 8.82 per cent.
Product-wise, the price of high-speed diesel rose by 11.63 per cent during November while that of petrol climbed by 10.57 per cent and for LPG by 31.30 per cent.
Expressing concern over the rise in wholesale inflation, industry body Assocham’s Secretary General D.S. Rawat said: “The continuous increase in the prices of petrol and high speed diesel due to rise in prices of crude oil globally have to be taken care of by the policy makers since it may have impact on import bills and subsequent impact on exchange rates.”
“… it may have negative impact on input prices for the industry which has already started to feel the pressure on its profitability.”
—IANS