Page 82 - ie2 August 2019

ECOWATCH

Inflation

Retail Inflation rose for the fourth straight
month to 3.18 percent in June 2019

CPI inflation was recorded at a high- Within food and beverages, inflation were dearer.
er 3.18 percent in June 2019 as against higher for pulses and products, meat and Core CPI inflation (CPI excluding the
3.05 percent in May 2019, 2.99 percent fish, fruits, milk and products, prepared food and beverages, and fuel and light
(revised) in April 2019, 2.86 percent in meals, snacks, sweets etc, spices, and cere- groups, as well as petrol and diesel prices
March 2019 and 2.57 percent in February als and products. However, the inflation for vehicles) softened once again to 4.09
2019 after moderating to a19-month low for vegetables, sugar and confectionery, percent in June 2019 from 4.23 percent in
of 1.97 percent (revised downward) in oils and fats, and non-alcoholic beverages May, 4.55 percent in April, and 5.01 per-
January 2019.This rise was attributed to declined in the month concerned. cent in March 2019. Core CPI was higher
hardening of inflation in food and bev- The inflation for housing was flat but at 5.4 percent in February 2019, 5.36 per-
erages that went up to 2.37 percent from that for miscellaneous items dropped cent in January 2019, 5.73 percent in De-
2.08 percent in May, 1.38 percent in April in June 2019. Within the miscellaneous cember 2018, 5.7 percent in November,
2019 and 0.66 percent in March 2019. items, health and education became and 6 percent in October 2018.

CPI inflation: June 2019
Index Change m-o-m (%) Change y-o-y (%) Financial year average
2018-19 2017-18
Combined CPI 142.9 0.63 3.18 3.43 3.58
Rural (2012=100) 143.6 0.84 2.21 3.01 3.60
Urban (2012=100) 142.1 0.42 4.33 3.93 3.58
CPI: Occupation-wise
CPI for industrial workers (2001=100) 314 (May 2019) 0.64 8.65 5.45 3.08
Source: CSO, MOSPI, Labour Bureau, Govt of India
WPI-based Inflation continued to decline in June 2019
Unlike CPI, the wholesale price index-based (WPI) inflation in India softened further to 23-month low of 2.02 percent in June 2019
from 2.45 percent in May, 3.07 percent in April and from 3.18 percent in March 2019 as the inflation for fuel and power group turned
negative and that of manufactured products eased.
WPI and CPI inflation from April 2017
6.0
WPI CPI
5.0

4.0
3.18
3.0

2.0
2.02
1.0

0.0
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Source: CSO, Office of the Economic Advisor, Govt. of India

82 l INDIAN ENGINEERING EXPORTS l AUGUST 2019