WPI Inflation Rises To 11.39% In August
New Delhi: The annual rate of inflation is 11.39% (Provisional) for the month of August, 2021 (over August, 2020) as compared to 0.41% in August, 2020, said the Ministry of Commerce and Industry.
The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum & natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year.
The month-over-month change in WPI index for the month of August, 2021 (as compared to July, 2021) was 1.04 %.
Month over Month Change in Major Groups of WPI:
Primary Articles (weight 22.62%): – The index for this major group increased by (1.56%) to 155.8 (provisional) in August, 2021 from 153.4 (provisional) for the month of July, 2021. Prices of Minerals (12.22%), Non-food Articles (6.18%) and Crude Petroleum & Natural Gas (1.51%) increased in August, 2021 as compared to July, 2021. Prices of Food Articles (-0.25%) declined in August, 2021 as compared to July, 2021.
Fuel & Power (weight 13.15%): – The index for this major group increased by (1.49%) to 116.0 (provisional) in August, 2021 from 114.3 (provisional) for the month of July, 2021. Prices of Mineral Oils (2.31%) and Coal (0.31%) increased in August, 2021 as compared to July, 2021. Prices of electricity remain unchanged.
Manufactured Products (weight 64.23%): – The index for this major group increased by (0.76%) to 133.0 (provisional) in August, 2021 from 132.0 (provisional) for the month of July, 2021. Out of the 22 NIC two-digit groups for Manufactured Products, 14 groups have witnessed increase in prices; 6 groups have witnessed decrease and for two groups the prices remained unchanged in August, 2021 as compared to July, 2021. The increase in prices in mainly contributed by manufacture ofbasic metals; food products; chemicals and chemical products;electrical equipment and manufacture of textiles.Some of the groups that have witnessed decrease in prices are manufacture ofother manufacturing; pharmaceuticals, medicinal chemical and botanical products; leather and related products; other transport equipment and tobacco productsin August 2021 as compared to July 2021.
WPI food index (weight 24.38%): The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 159.3 in July, 2021 to 159.6 in August, 2021. The rate of inflation based on WPI Food Index decreased from 4.46% in July, 2021 to 3.43% in August, 2021.
Final index for the month of June, 2021 (Base Year: 2011-12=100): For the month of June, 2021, the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 133.7 and 12.07% respectively. The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for August, 2021 are at Annex I. The Annual rate of Inflation (Y- o-Y) based on WPI for different commodity groups in the last six months is at Annex II. The WPI Index for different commodity groups in the last six months is at Annex III.
Response Rate:The WPI for August, 2021 have been compiled at a weighted response rate of 77 percent, while the final figure for June, 2021 is based on the weighted response rate of 91 percent.
Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.