Global commodity prices could drive Sep WPI to -4.4%

Weakness in the global commodity prices is expected to drive the Wholesale Price Index (WPI) number lower for the month of September. As per a CNBC-TV18 poll, WPI number is expected to continue its decline in September. In August, WPI had declined for the tenth consecutive month. Although, the WPI is expected to continue it downward trend to - 4.4 percent, it will be a slight improvement over August’s - 4.95 percent. The core WPI is expected to fall around - 1.8 to - 2 percent as against - 1.87 percent in August. One needs to keep an eye out for any uptake in the manufacturing inflation on month-on-month basis. Manufacturing inflation has close to 65 percent weightage in the WPI and it had declined close to two percent in August. Food inflation number will reflect the movements in Consumer Price Index (CPI). Pulses are expected to continue with high trajectory whereas the vegetables could be stable. As per the experts, low rainfall will not impact the WPI food inflation number to a large extent. Though CPI is the big data that the Reserve Bank looks out for, the WPI number would help in understanding the growth movement in the economy.Watch video for more.