Govt releases truncated April WPI inflation data; reports 10.12% deflation in fuel, power

NEW DELHI: The government on Thursday released truncated data for April wholesale pricebased inflation saying there was limited transaction of products in the market due to the outbreak of COVID-19. As per the data released by the Commerce and Industry Ministry, wholesale price index (WPI) deflation in primary articles was 0.79 per cent in April, as against an inflation of 3.72 per cent in March.

The fuel and power basket saw a deflation of 10.12 per cent in April, against 1.76 per cent deflation in the previous month.

“In view of the limited transactions of products in the wholesale market in April 2020 due to the spread of COVID-19, it has been decided to release the price movement of selected subgroups/groups of WPI, following the principles of adequacy, an official statement said.

All commodities WPI could not be computed for April-2020 due to non- availability of manufactured product group index, it added. It said the price indices of primary articles have been computed based on mandi prices of agricultural items; exmine prices of minerals; prices of crude petroleum and natural gas.

Price indices of fuel and power major group have been computed based on the price data reported from Ministry of Petroleum and Natural Gas, selected public sector undertakings (PSUS), Office of the Coal Controller and Central Electricity Authority. Price indices of these major groups (primary articles and fuel & power) were released for April 2020 with standard procedures. No changes in estimation procedures were done, it added.

With regard to inflation in manufactured products, the ministry said in view of the nationwide lockdown by the government, the price collection of manufactured products through personal visits of price collectors was suspended with effect from March 19.

The data (ex-factory prices) was collected through electronic means of communications from selected factories and institutional sources. The price movement of these sub-groups/ groups of WPI was worked out by taking the prices of only those items for which at least 25 per cent of price quotations were reported from the selected manufacturing units. Indices were compiled only for five manufacturing groups - manufacture of food products, beverages, chemicals and chemical products, pharmaceuticals, medicinal chemical and botanical products, and basic metals.