WPI Eases To A Nine-Month Low To 4.68% In February FY14
Biswajit Yadav / 14 Mar 2014
The WPI declined to a nine-month low in February as food and fuel prices contracted. The wholesale vegetable prices dropped by 4% during this month as compared to 16.60% during the previous month of this year.
The wholesale price index came down to a nine-month low in February FY14 to 4.68% as compared to 5.05% in January this year. Meanwhile, the WPI during the previous year in the month of February stood at 7.28%. The decrease in the inflation rate was mainly due to reduction in the food and fuel prices.
| Wholesale Price Index and Rates of Inflation for February 2014 | |||||
|---|---|---|---|---|---|
| Groups | Weight (%) | February'14 | January'14 | Change | February' 13 |
| Primary article | 20.12 | 6.33 | 6.84 | -0.51 | 10.54 |
| Fuel & Power | 14.91 | 8.75 | 10.03 | -1.28 | 10.64 |
| Manufactured Products | 64.97 | 2.76 | 2.76 | 0.00 | 4.8 |
| All Commodities | 100 | ||||
Primary article which has a weightage of 20.12% in the total WPI basket came down to 6.33% in February FY14 as compared to 6.84% in the month of January FY14. The reduction in the primary article was mainly due to a fall in the prices of pulses (-4.12%) and considerable slowdown in the price growth of potato (from 21.73% in January 2014 to 8.36% in February 2014). The increase in the rate of onions was one of the prime reasons for the high inflation in the previous months. The onion price has decelerated to -20.06% in the month of February as compared to 6.59% during the previous month.
The inflation of fuel & power, which has a total weightage of 14.9% in the WPI basket, has declined to 8.75% in the month of February 2014 as compared to 10.03% during the previous month of the same year. The Inflation in this section has reduced due to lower price of coking coal by 7%, aviation turbine fuel, kerosene and electricity, each reduced by 2% in the month of February. While the price of petrol and high speed diesel rose by 1% each as compared to the previous month.
The manufactured products have remained flat during this month as compared to the previous month of January 2014. The price of food products have reduced to 0.90% in February 2014 as compared to 1.50% in the previous month. The price of edible oils and transport equipment parts has also come down as compared to the previous month of the year 2014. While the price of chemicals (up by 41 basis points), leather products (up by 106 basis points) and paper and paper products (up by 108 basis points) have increased in February 2014 as compared to previous month of the same year.
The consistent correction in the vegetable price (from 16.60% in January FY14 to 3.99% in February FY14) has contributed to the overall decline in inflation. Previous article on WPI.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.