WPI Inflation at five month low in India

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of July, 2014 rose by 1.1 percent to 184.6 (provisional) from 182.6 (provisional) for the previous month.

INFLATION

Build up inflation rate in the financial year so far was 2.38% compared to a build up rate of 3.17% in the corresponding period of the previous year.
 

The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 2.7 percent to 256.6 (provisional) from 249.9 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for  ‘Food Articles’ group rose by 3.6 percent to 258.6 (provisional) from 249.7 (provisional) for the previous month due to higher price of  fruits & vegetables (16%), maize (8%), condiments & spices and urad (6% each), jowar (5%), masur (4%), egg, arhar and tea (2% each) and pork, beef & buffalo meat, mutton, wheat,      barley, bajra and ragi (1% each).  However, the price of fish-inland (15%), gram and fish-marine (3% each),      poultry chicken (2%) and moong (1%) declined.

The index for  ‘Non-Food Articles’  group rose by 0.8 percent to 218.1 (provisional) from 216.4  (provisional) for the previous month due to higher price of  guar seed and gingelly seed (sesamum) (7% each), copra (coconut) (4%),      castor seed and niger seed (3% each) and rape & mustard seed, fodder, cotton seed and mesta (1% each).  However, the price of raw jute (5%), raw rubber (4%) and raw silk, soyabean, sunflower and groundnut seed (1% each) declined.

The index for  ‘Minerals’ group rose by 0.1 percent to 346.1 (provisional) from 345.6  (provisional) for the previous month due to higher price of barytes (22%), steatite and magnesite (5% each), sillimanite (2%) and chromite and copper ore (1% each).  However, the price of phosphorite (3%) and zinc concentrate (2%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 1.1 percent to 214.7 (provisional) from 212.3 (provisional) for the previous month due to higher price of petrol and furnace oil (3% each), bitumen and high speed diesel (2% each) and       aviation turbine fuel (1%).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.3 percent to 155.4 (provisional) from 154.9 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by 1.7 percent to 174.6 (provisional) from 171.6 (provisional) for the previous month due to higher price of tea leaf (unblended) (11%), tea dust (unblended) and tea dust (blended) (10 % each), tea leaf (blended) and coffee powder (6% each), oil cakes (4%), sugar, gur and salt (3% each), ghee (2%) and      vanaspati, bakery products, soyabean oil, groundnut oil, sugar confectionary and powder milk (1% each).  However, the price of processed prawn (8%), sooji ( rawa ) (2%) and rice bran oil, gingelly oil, cotton seed oil and wheat flour (atta) (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.7 percent to 198.7 (provisional) from 197.4 (provisional) for the previous month due to higher price of  rectified spirit (5%), bidi (2%) and dried tobacco (1%).

The index for ‘Textiles’ group rose by  0.1  percent to 144.1 (provisional) from 143.9 (provisional) for the previous month due to higher price of  jute sacking cloth, jute yarn,  cotton yarn, man made fibre and jute sacking bag (1% each).  However, the price of man made fabric and gunny and hessian cloth (1% each) declined.

The index for ‘Wood & Wood Products’ group declined by 0.9 percent to 185.4 (provisional) from 187.0 (provisional) for the previous month due to lower price of plywood & fibre board (2%).

The index for ‘Paper & Paper Products’ group rose by 0.1 percent to 149.3 (provisional) from 149.2 (provisional) for the previous month due to higher price of corrugated sheet boxes (1%).

The index for ‘Leather & Leather Products’ group declined by 0.9 percent to 144.3 (provisional) from 145.6 (provisional) for the previous month due to lower price of leather garments & jackets (8%).

The index for ‘Rubber & Plastic Products’ group rose by 0.3 percent to 150.6 (provisional) from 150.2 (provisional) for the previous month due to higher price of tyres (1%).

The index for ‘Non-Metallic Mineral Products’ group rose by 0.5 percent to 168.1 (provisional) from 167.3 (provisional) for the previous month due to higher price of bricks & tiles and marbles (2% each).

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 0.2 percent to 166.8 (provisional) from 167.1 (provisional) for the previous month due to lower price of ferro manganese (3%) and HRC, gold & gold ornaments, melting scrap, billets, ferro silicon and plates (1% each).  However, the price of steel rods (4%), wire rods (2%) and pressure cooker (1%) moved up.

The index for ‘Machinery & Machine Tools’ group rose by 0.1 percent to 133.9 (provisional) from 133.8 (provisional) for the previous month due to higher price of hydraulic equipment, battery dry cells, fans, insulators and magnets (1% each).  However, the price of fibre optic cable (12%), cranes (2%) and rubber machinery              (1%) declined.

FINAL INDEX FOR THE MONTH OF MAY, 2014 (BASE YEAR: 2004-05=100)

For the month of  May, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 182.0 as compared to 181.7 (provisional) and annual rate of inflation based on final index stood at 6.18 percent as compared to 6.01 percent respectively as reported on 16.06.2014.