Index Numbers of Wholesale Price in India for the month of May, 2020

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of wholesale price in India for the month of May, 2020 (Provisional) and for the month of March 2020 (Final) in this press release. 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. Due to limited information available for the month of April 2020, the provisional figures of May-2020 are compared with final figures of March, 2020.

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of May, 2020 declined by (-2.24%) to 117.7 (provisional) from 120.4 (Final) for the month of March, 2020.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at (-3.21%) (provisional) for the month of May, 2020 (over May, 2019) as compared to 2.79% during the corresponding month of the previous year.

The movement of the index for the various commodity group is summarized below:-

PRIMARY ARTICLES (Weight 22.62%)

The index for this major group declined by (-0.87%) to 136.2 (provisional) in May 2020 from 137.4 (final) for the month of March, 2020. Prices of Food Articles (0.73%) increased whereas prices of Crude Petroleum & Natural Gas (-23.18%) and Non Food Articles (-1.44%) declined as compared to March 2020.

FUEL & POWER (Weight 13.15%)

The index for this major group declined by (-15.88%) to 83.7 (provisional) in May 2020 from 99.5 (final) for the month of March, 2020. Prices of mineral oils group (-30.10%) declined compared to month of March, 2020. Prices of Coal and Electricity remain unchanged.

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group declined by (-0.42%) to 118.1 (provisional) in May 2020 from 118.6 (final) for the month of March, 2020. Out of the 22 NIC two-digit groups for Manufactured products, 10 groups that have witnessed increase in prices are manufacture of beverages; tobacco products; wearing apparel; leather and related products; wood and of products of wood and cork; paper and paper products; pharmaceuticals, medicinal chemical and botanical products; other non-metallic mineral products; motor vehicles, trailers and semi-trailers and other transport equipment. Whereas the groups that witnessed decrease in prices were manufacture of food products; textiles; printing and reproduction of recorded media; chemicals and chemical products; rubber and plastics products; manufacture of basic metals; fabricated metal products, except machinery and equipment; computer, electronic and optical products; electrical equipment; machinery and equipment as compared to March, 2020.

The WPI for May, 2020 have been compiled at a response rate of 75 per cent, the final figure for March, 2020 at a response rate of 85 per cent. These provisional figures of WPI will undergo revision as per the final revision policy of WPI.

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 provisionally increased from 145.7 in March, 2020 to 146.1 in May, 2020. The annual rate of inflation based on WPI Food Index decreased from 5.20% in March, 2020 to 2.31% in May, 2020.

FINAL INDEX FOR THE MONTH OF MARCH, 2020 (BASE YEAR:2011-12=100)

For the month of March, 2020 the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 120.4 as compared to provisional figure121.1 and WPI based rate of inflation stood at 0.42% as compared to its provisional levels of 1.00% reported on 14.04.2020. Indices for the month of March 2020 are finalized in the light of updated price data received from the selected sources.

CLARIFICATION ON RELEASE OF APRIL 2020 WPI

This department has advised the field offices to collect price data through electronic means of the communication during the lockdown. The response rate for April 2020 has improved substantially. Final index for the month of April 2020 will be released in next month press note in the light of the updated data received from the selected sources.