Page 537 - ES 2020-21_Volume-1-2 [28-01-21]

164 Economic Survey 2020-21 Volume 2

Description Weights 2018-19 2019-20 2020-21# Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 (P)
Milk & products 6.61 1.8 2.9 6.4 6.5 6.2 5.6 5.2 5.0 4.0
Oils & fats 3.56 2.1 2.9 14.0 12.2 12.4 13.4 15.2 17.9 20.0
Fruits 2.89 2.3 0.7 1.4 0.1 1.0 3.1 0.3 0.2 2.7
Vegetables 6.04 –5.2 21.3 11.0 11.1 11.5 20.8 22.1 15.5 –10.4
Pulses & products 2.38 –8.3 9.9 17.6 15.7 14.4 14.7 18.3 18.1 16.0
Sugar & confectionery 1.36 –7.0 0.8 3.5 3.6 3.9 2.7 1.5 1.0 0.5
Fuel & light 6.84 5.7 1.3 2.3 2.7 3.2 2.8 2.1 1.6 3.0
CPI Excl. Food & Fuel 47.3 5.8 4.0 5.4 5.6 5.6 5.4 5.9 5.7 5.5
Group (Core)
Source: NSO.
Note: (P): Provisional, *Consumer Food Price Index, # April to December 2020

5.3 WPI inflation declined from 4.3 per cent in 2018-19 to 1.7 per cent in 2019-20 and further
to (-) 0.1 per cent in 2020-21 (Apr-Dec). It remained negative from April to July 2020 and stood
at 1.2 per cent in December 2020 (Figure 3). The decline in WPI inflation in the current year is
mainly on account of fuel & power. Persistent volatility in the global crude oil prices during the
year led to fall in inflation of major fuel products. WPI fuel & power inflation dropped sharply
from 11.6 per cent in 2018-19 to (-) 1.8 per cent in 2019-20 and further to (-) 12.2 per cent in
2020-21 (Apr-Dec). WPI food inflation declined from 6.9 per cent in 2019-20 to 4.2 per cent in
2020-21 (Apr-Dec) and WPI core inflation increased to 0.8 per cent in 2020-21 (Apr-Dec) as
compared to (-) 0.4 per cent in 2019-20 (Table 3).

Figure 3: Trends in WPI All commodities, Core and Food inflation

Source: Office of the Economic Adviser, DPIIT
Table 3: Inflation in selected groups of WPI- Base 2011-12 (in per cent)

Nov–20 dec–20
Description Weight 2018–19 2019–20 2020–21# Jul–20 Aug–20 Sep–20 Oct–20
(P) (P)
All commodities 100.0 4.3 1.7 –0.1 –0.2 0.4 1.3 1.3 1.6 1.2