336 items out of 697 witness less than 5% WPI inflation: PHD Chamber

No. PR- 070

July 30, 2021

New Delhi

 

336 items out of 697 witness less than 5% WPI inflation: PHD Chamber

 

Fuel products with more than 50% inflation stoke overall inflation trajectory; PHDCCI urges the Government to bring petroleum products in the ambit of GST, sooner than later

 

There are 336 items with less than 5% WPI inflation, 129 items with inflation in the range of 5%-10%, 100 items with inflation in the range of 10%-20%, 103 items with inflation in the range of 20%-50% and 26 items with inflation of more than 50%, according to WPI inflation analysis conducted by PHD Research Bureau, PHD Chamber of Commerce and Industry.

 

Majorly, the high inflation in the items of fuel & power segment of WPI inflation has stoked overall WPI inflation in the higher trajectory, said the analysis of PHD Chamber of Commerce and Industry.

 

Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, urges the Government to bring the petroleum products in the ambit of GST, sooner than later. High inflation in the fuel products is not only stoking overall inflation but also increasing the cost of raw materials for manufactured products with its cascading impact, said Sanjay Aggarwal.

 

The WPI inflation has been in a double digit growth trajectory since last 3 months, stoked by high prices of fuel & power, he said.

 

The WPI inflation has reached the level of 12.07% in June 2021 from 12.9% in May 2021, 10.7% in April 2021, 7.9% in March 2021, 4.8% in February and 2.5% in January 2021. The WPI stood at (-)1.81% in June 2020, said Sanjay Aggarwal.

 

High commodity prices are posing a serious challenge to the small businesses to operate in the difficult pandemic times. These are  impacting the cost of production and reducing price-cost margin of the producers and affecting their competitiveness in the domestic and international markets, said Sanjay Aggarwal.

 

WPI Inflation trajectories so far

 

S. No. WPI Inflation Range No. of Items Description (Prominent Items)
1 Less than 5% WPI 336 Potato, Tomato, Bajra, Cigarette, Wheat flour (Atta), Air Coolers, Sugar, Steel cables, Wine, Milk, among others
2 5% ≤ WPI < 10% 129 Insulator, Motor cycles, Basmati rice, Salt, Bicycles of all types, Gold & gold ornaments, Rubber Chemicals, among others
3 10% ≤ WPI < 20% 100 Electricity, Buffalo meat, Iron/Steel Furniture, Wheels/Wheels & parts, Shampoo, among others
4 20% ≤ WPI < 50% 103 Plastic tube (flexible/non-flexible), Alcohols, Steel Container, Aluminium wire, Egg, Silver, Raw Jute, among others
5 More than 50% WPI 26 Palm Oil, Soyabean Oil, HSD, Crude Petroleum, Onion, Petroleum Coke, Acetic acid, Sulphuric Acid, Orange and Kerosene among others
  Total Items in WPI Basket 697

Source: PHD Research Bureau, PHD Chamber, compiled from Office of Economic Advisor, Government of India

Note: ≥ represents more than or equal to; < represents less than; 3 items having cumulative weight of 0.35 are not included in the above data as their index value stands at 0 in June 2021 data release.

               

The WPI basket contains a total of around 697 items, which are categorised under major heads of Primary Articles, Fuel and Power and Manufactured Items. Weights are assigned to each commodity in the WPI basket. The manufactured items category has cumulative weight of 64.2, primary articles category has 22.6 weight and fuel and power category has 13.2 weight.

 

The items with WPI inflation of more than 50% in June 2021 comprise majority of the fuel products which are stoking the overall WPI inflation, said Sanjay Aggarwal.

 

Item-wise WPI Inflation Trends, June 2021

Source: PHD Research Bureau, PHD Chamber, compiled from Office of Economic Advisor, Government of India

End 

 

Media Division

 

PHD Chamber of Commerce and Industry