Inflation rises 1.88% in July, mixed impact for auto

The Wholesale Price Index (WPI) inflation for India has increased 1.88 percent after a four-month hiatus. As per government data, the index rose 1.88 percent compared to 0.63 percent in July 2016, on back of the increase in food prices.

As per the WPI inflation, the automotive industry saw a mixed impact, while the index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 0.4 percent on back of lower prices of cylinder lines (5%), radiators and coolers and engine (2% each), light, medium and heavy commercial vehicles, minibus/bus, filter element and wheels/wheels and parts (1% each). 

However, the price of brake pad/brake liner/brake block/brake rubber, others (4%), head lamp and crankshaft (3% each) and body (for commercial motor vehicles), shock absorbers, piston ring/piston and compressor, seat for motor vehicles and gear box and parts (1% each) moved up.

While the index for the ‘Manufacture of Other Transport Equipment’ group rose by 1.2 percent due to higher price of diesel/electric locomotive (11%), autorickshaw/tempo/matador/three wheelers (3%), motor cycles (2%) and tanker and propellers and blades of boats/ships (1% each).  However, the price of wagons (3%) and bicycles of all types (2%) declined.