WPI inflation at 2.47 pct in March

Lloyd Doyle
April 16, 2018

Mr Brown highlighted BRC Shop Price Index data, which showed food prices dropping at their fastest rate in 18 months in March, which could have a larger impact on the inflation figure alongside fuel costs. Further the current month data was also lower compared to 5.11% in the corresponding period of the previous year.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.04 percent, the yield on the long-term 30-year note almost steadied at 0.70 percent and the yield on short-term 2-year remained flat at -0.15 percent by 04:50 GMT.

A consensus of economists forecast the Office for National Statistics' (ONS) Consumer Price Index (CPI) to come in at 2.7 per cent for March, in line with February's reading and holding below the 3 per cent recorded in January.

Index of primary articles in WPI declined by 0.5% to 127.4 (provisional) from 128 (provisional) for the previous month.

Deflation in vegetables was 2.70 percent, pulses (20.58 percent) and wheat (1.19 percent) in March.

The index for Food Articles group declined by 0.4 percent to 137.2 (provisional) from 137.8 (provisional) for the previous month.


However, the price of iron ore, chromite, manganese ore, limestone, zinc concentrate and lead concentrate moved up. However, the price of manufacture of cordage, rope, twine and netting and texturised and twisted yarn (1 per cent each) declined.

The index for Non-Food Articles group declined by 0.3 percent to 120.2 (provisional) from 120.6 (provisional) for the previous month.

The primary articles hold weightage of 22.62% in WPI.

Inflation in "fuel and power" basket however rose to 4.70 percent in March from 3.81 percent in the previous month. This index holds 64.23% of WPI.

New Zealand's annual pace of inflation probably slowed in the first three months of the year as the government's "fees free" tertiary education policy comes into effect, removing price pressures in the sector.

Moreover, the retail inflation eased to 4.28 per cent, a five-month low in March, but remained above RBI's medium-term target, supporting views that monetary policy is likely to remain unchanged at the next review in early June.

Other reports by Iphone Fresh

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