July inflation rises 1.88% compared to .90% in June; Exports grew 3.94% while Imports grew 15.42%

The Dollar Business Bureau

Inflation

The July inflation, based on monthly WPI, stood at 1.88% (provisional) over July, 2016 as compared to 0.90% (provisional) for June and 0.63% during the corresponding month of the previous year. These are the figures in the first month of the GST roll-out.

The index for food articles rose by 6.2% compared to June when prices had declined by 3.47%. The index for non-food articles also saw an increase of 0.6% in July. However fuel and power saw a decline by 1.4 percent to 88.4 (provisional) from 89.7 (provisional) for the previous month. The index for manufactured products saw a marginal increase of 0.2%, textiles declined by 0.3%.

Exports

In continuation with the positive growth exhibited by exports for the last eleven months, exports during July 2017 grew 3.94% valued at $22543.80 million as compared to $21689.57 million during July, 2016. In Rupee terms, during July 2017 exports were valued at Rs. 145308.10 crore as compared to Rs.145770.39 crore during July, 2016, registering a negative growth of 0.32%. During July 2017, major commodity groups of export showing positive growth over the corresponding month of last year are Engineering Goods (15.16%), Petroleum Products (20.27%), Organic & Inorganic Chemicals (20.67%), Cotton Yarn/Fabs./made-ups, Handloom Products etc.( 5.39%) and Marine Products(30.53%).

Imports

Imports during July 2017 were valued at $33993.61 million (Rs 219108.89 crore) which was 15.42% higher in Dollar terms and 10.70% higher in Rupee terms over the level of imports valued at $29450.97 million (Rs. 197932.93 crore) in July, 2016. Cumulative value of imports for the period April-July 2017-18 was $146256.71 million (Rs. 942740.00 crore) as against $113996.75 million (Rs. 763687.22 crore) registering a positive growth of 28.30% in Dollar terms and 23.45% in Rupee terms over the same period last year. Major commodity group of imports showing high growth in July 2017 over the corresponding month of last year are Petroleum, Crude & products (15.02%), Electronic goods (22.5%), Machinery, electrical & non-electrical (7.34%), Pearls, precious & Semi-precious stones (6.86%) and Gold (95.05%).

Services Exports

Exports during June 2017 were valued at $13388 million (Rs. 86276.29 Crore) registering a negative growth of 0.31% in dollar terms as compared to positive growth of 4.08% during May 2017.

Services Imports

Imports during June 2017 were valued at $7457 million (Rs. 48055.15 Crore) registering a negative growth of 2.07% in dollar terms as compared to positive growth of 5.44% during May 2017.

Overall Trade Balance

Taking merchandise and services together, overall trade deficit for April-July 2017-18 is estimated at $34072.58 million as compared to US$ 10799.41 million during April-July 2016-17. (Services data pertains to April-June 2017-18 as June 2017 is the latest data available as per RBI’s Press Release dated 14th August 2017)

(Source: PIB)