India's WPI-based inflation at -0.91% in February

14 Mar '16

3 min read

India's annual rate of inflation, based on monthly wholesale price index (WPI), stood at minus 0.91 per cent for February 2016 (over February 2015), according to the provisional data released by the Office of the Economic Adviser, Ministry of Commerce and Industry.

In comparison, annual rate of inflation was minus 0.90 per cent for January 2016 and minus 2.17 per cent during February 2015. Build up inflation rate in the financial year 2015-16 so far was minus 1.19 per cent compared to a build up rate of minus 2.61 per cent in the corresponding period of the previous year.

Meanwhile, the official WPI for all commodities (Base: 2004-05 = 100) for the month of February, 2016 declined by 1.0 per cent to 174.0 from 175.7 for the previous month.

The index for manufactured products (weight 64.97 per cent) for February, 2016 rose by 0.3 per cent to 153.1 from 152.7 for the previous month. The index for textiles sub-group, rose by 0.1 per cent to 139.6 from 139.4 for the previous month due to higher price of jute yarn (4 per cent), jute sacking cloth (2 per cent) and jute sacking bag, gunny and hessian cloth and cotton yarn (1 per cent each). However, the price of tyre cord fabric declined by 1 per cent.

The index for primary articles (weight 20.12 per cent) declined by 3.4 per cent to 244.7 from 253.3 for the previous month. On the other hand, the index for fuel and power (weight 14.91 per cent) declined by 1.2 per cent to 169.6 from 171.6 for the previous month due to lower prices of aviation turbine fuel, bitumen, furnace oil, LPG, petrol and high speed diesel.

Reacting to WPI for February 2016, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) president Sunil Kanoria said, “While the inflation is within the target level of Government and RBI, the focus of the policy makers should now shift to revive GDP and industrial growth, especially the poor performance of manufacturing sector, consumer non durable goods and capital goods as seen in the recent IIP numbers needs to be looked into immediately.”

The chamber further said that since the Government of India have shown its commitment to stick to fiscal consolidation path, therefore, it gives the room to RBI to ease liquidity and reduce interest rates to dispense with deficient demand in the economy. (RKS)

Fibre2Fashion News Desk – India

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