Wholesale inflation slipped to a four-month low of 3.85 per cent in April as both food articles and manufactured items cooled down on prices.
The April 2017 WPI (wholesale price inflation) data is the first of the series of data that are to be released on revised base year—from 2004-05 to 2011-12, T.C.A. Anant, Chief Statistician of India said.
"The change has taken into consideration current consumer basket and reflect current consumption patterns," Anant said, releasing the new series for WPI and CPI (consumer price inflation).
“Changes in IIP too reflect technological and consumption changes. Entities more relevant to data collection have been included,” he said.
The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products. A total of 144 new items have been included in the new series of data to be applicable for evaluating both CPI and WPI.
The WPI inflation that reflects the annual rate of price rise, according to the new base, stood at 5.29 per cent in March, 5.51 per cent in February, 4.26 per cent in January, 2.10 per cent in December and 1.82 per cent in November.
Inflation in food articles was 1.16 per cent in April, lower than 3.82 per cent in March. "The low food inflation was mainly because food items saw a deflation owing to increased arrivals from the rabi harvest season," said Anant.
Prices of pulses saw deflation of 13.64 per cent, vegetables (-7.78 per cent), potato (-40.97 per cent) and onion (-12.47 per cent).
"A new food index is being compiled combining the food articles under primary articles and food products under manufactured products. Together with the consumer food price index released by the Central Statistics Office, this would help monitor the price situation of food items better," the CSO said.
Inflation in the fuel and power segment was 18.52 per cent and inflation in manufactured products stood at 2.66 per cent in April.
The new series data is also applicable for calculating index for industrial production (IIP). Industrial growth slipped to 2.7 per cent in March as against 5.5 per cent a year ago.
The new series of WPI and IIP data is likely to bring greater accuracy and improved synchronisation among data sets, leading to more accurate situational analysis and thus better policy making, Ramesh Abhishek, secretary, Department of Industrial Policy and Promotion (DIPP) said while releasing the new data series.
This will bring the Consumer Price Index, IIP, the GDP and gross value addition data on the same platform as all will have 2011-12 as the base year. This is expected to reduce discrepancies and make it easier to draw comparisons.
The new series of IIP will include technology items such as smartphones, tablets, LED television and tablets, a government statement said.
