WPI inflation for May 2017 declined to 2.17 per cent from previous month's 3.85 per cent

In the reported month, WPI declined by 0.4 percent to 112.8 (provisional) from 113.2 (provisional) for the previous month.

The annual rate of inflation, based on monthly WPI, stood at 2.17% (provisional) for the month of May, 2017 (over May,2016) compared to 3.85% (provisional) for the previous month and -0.90% during the corresponding month of the previous year.

Build up inflation rate in the financial year so far was -0.35% compared to a build up rate of 2.51% in the corresponding period of the previous year

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

PRIMARY ARTICLES (Weight 22.62%)

The index for this major group declined by 1.5 percent to 126.5 (provisional) from 128.4 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for 'Food Articles' group declined by 1.2 percent to 137.7 (provisional) from 139.4 (provisional) for the previous month due to lower price of fish-inland and egg (10% each), betel leaves (6%), fish-marine, barley, masur and tea (5% each), arhar and condiments & spices (4% each), ragi, wheat and urad (3% each), gram and fruits & vegetables (2% each) and coffee, rajma, moong, maize and jowar (1% each). However, the price of peas/chawali (4%) and beef and buffalo meat and poultry chicken (3% each) moved up.

The index for 'Non-Food Articles' group declined by 1.2 percent to 119.8 (provisional) from 121.2 (provisional) for the previous month due to lower price of raw rubber (10%), guar seed (6%), cotton seed (4%), castor seed, raw jute, soyabean and groundnut seed (3% each), raw cotton, mesta, raw silk, copra (coconut) and sunflower (2% each) and fodder and linseed (1% each).  However, the price of floriculture (8%), niger seed (2%) and safflower (kardi seed) (1%) moved up.

The index for ‘Minerals’ group rose by 1.9 percent to 114.8 (provisional) from 112.7 (provisional) for the previous month due to higher price of garnet (43%), lead concentrate (11%), copper concentrate (7%), iron ore (4%) and zinc concentrate (1%). However, the price of manganese ore (16%) and chromite (1%) declined.

The index for ‘Crude Petroleum & Natural Gas’ group declined by 7.1 percent to 71.1 (provisional) from 76.5 (provisional) for the previous month due to lower price of  crude petroleum (9%) and natural gas (2%).

FUEL & POWER (Weight 13.15%)

The index for this major group declined by 2.1 percent to 90.8 (provisional) from 92.8 (provisional) for the previous month due to lower prices of LPG (12%), bitumen and electricity (4% each), naphtha (3%), ATF, petrol and HSD (1% each). However, the price of petroleum coke (7%), lignite (6%), and kerosene (3%) moved up.

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group rose by 0.4 percent to 112.6 (provisional) from 112.1 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Manufacture of Food Products’ group declined by 0.1 percent to 127.2 (provisional) from 127.3 (provisional) for the previous month due to lower price of manufacture of macaroni, noodles, couscous and similar farinaceous products (6%), honey and copra oil (5% each), rice bran oil (4%), spices (including mixed spices), cotton seed oil, buffalo meat (fresh/frozen), wheat flour (atta) and maida (3% each), sooji (rawa), rapeseed oil, processed tea, groundnut oil, vanaspati and sunflower oil (2% each) and soyabean oil, wheat bran, salt, mustard oil and palm oil (1% each). However, the price of other meats, preserved/processed and manufacture of cocoa, chocolate and sugar confectionery (3% each), coffee powder with chicory, instant coffee, ghee, condensed milk and powder milk (2% each) and gur, processing and preserving of fish, crustaceans and molluscs and products thereof, castor oil, rice, non-basmati, rice products, butter, processing and preserving of fruit and vegetables, chicken/duck, dressed-fresh/frozen, manufacture of starches and starch products  and sugar (1% each) moved up.

The index for ‘Manufacture of Beverages’ group rose by 0.3 percent to 117.5 (provisional) from 117.2 (provisional) for the previous month due to higher price of beer and wine (1% each).

The index for ‘Manufacture of Tobacco Products’ group declined by 1.9 percent to 142.9 (provisional) from 145.7 (provisional) for the previous month due to lower price of cigarette (5%) and other tobacco products (2%). However, the price of biri (2%) moved up.

The index for 'Manufacture of Textiles' group rose by 0.3 percent to 113.6 (provisional) from 113.3 (provisional) for the previous month due to higher price of cotton yarn (2%) and manufacture of other textiles, texturised and twisted yarn and manufacture of made-up textile articles, except apparel (1% each). However, the price of synthetic yarn (2%) and manufacture of knitted and crocheted fabrics and manufacture of cordage, rope, twine and netting (1% each) declined.

The index for ‘Manufacture of Wearing Apparel’ group declined by 0.4 percent to 133.5 (provisional) from 134.1 (provisional) for the previous month due to lower price of leather garments incl. Jackets (2%) and shirts/half shirts of cotton and/or man-made fibre and babies garments, knitted (1% each).  However, the price of Men/Boys suits, coats and jackets (2%) and trouser/pants made of cotton and/or man-made fibre (1%) moved up.

The index for ‘Manufacture of Leather and Related Products’ group declined by 0.6 percent to 119.5 (provisional) from 120.2 (provisional) for the previous month due to lower price of chrome tanned leather (5%), belt & other articles of leather (4%) and harness, saddles & other related items (1%). However, the price of gloves of leather (7%), canvas shoes (3%) and leather shoe, plastic/pvc chappals, travel goods, handbags, office bags, etc. and waterproof footwear (1% each) moved up.

The index for ‘Manufacture of Wood and Products of Wood and Cork’ group declined by 0.5 percent to 130.6 (provisional) from 131.3 (provisional) for the previous month due to lower price of lamination wooden sheets/veneer sheets, timber/wooden plank, sawn/resawn  and particle boards (1% each).  However, the price of wooden block - compressed or not (2%) and wood cutting, processed/sized (1%) moved up.

The index for ‘Manufacture of Paper and Paper Products’ group rose by 0.7 percent to 116.4 (provisional) from 115.6 (provisional) for the previous month due to higher price of paper bag including craft paper bag (22%), laminated plastic sheet (6%), card board box (4%), poster paper (3%), kraft paper and duplex paper (2% each) and paper carton/box, hard board, base paper, map litho paper, pulp board and corrugated sheet box (1% each). However, the price of card board (3%) and press board and paper for printing & writing (1% each) declined

The index for ‘Printing and Reproduction of Recorded Media’ group declined by 0.7 percent to 141.7 (provisional) from 142.7 (provisional) for the previous month due to lower price of journal/periodical (3%) and sticker plastic (2%). However, the price of printed labels/posters/calendars (1%) moved up.

The index for ‘Manufacture of Chemicals and Chemical Products’ rose by 0.3 percent to 111.7 (provisional) from 111.4 (provisional) for the previous month due to higher price of camphor (9%), mosquito coil (6%), dye stuff/dyes incl. dye intermediates and pigments/colours and hydrogen peroxide (5% each), menthol (4%), carbon black (3%), detergent cake, washing soap cake/bar/powder, varnish (all types), caustic soda (sodium hydroxide), organic surface active agent, acrylic fibre and ammonium sulphate (2% each) and  liquid air & other gaseous products, acetic acid and its derivatives, ammonia liquid, insecticide and pesticide, agro chemical formulation, nitrogenous fertilizer, others, powder coating material, foundry chemical, additive, mixed fertilizer, superphospate / phosphatic fertilizer, others, alkyl benzene, ammonium nitrate and epoxy, liquid (1% each). However, the price of ammonia gas (9%), amine (7%), polyester chips or polyethylene terepthalate (pet) chips (5%), plasticizer, nitric acid, mono ethyl glycol, perfume/scent and oleoresin (3% each), gelatine and sodium silicate (2% each) and phosphoric acid, phthalic anhydride, organic chemicals, organic solvent, catalysts, xlpe compound, polystyrene, expandable, tooth paste/tooth powder, polyester film(metalized), printing ink, viscose staple fibre, aromatic chemicals and sulphuric acid (1% each) declined.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group declined by 0.2 percent to 120.8 (provisional) from 121.0 (provisional) for the previous month due to lower price of antidiabetic drug excluding insulin (i.e. tolbutam) (8%), antibiotics & preparations thereof (2%) and api & formulations of vitamins (1%). However, the price of simvastatin (16%), sulpha drugs (9%), anti allergic drugs and plastic capsules (3% each), antipyretic, analgesic, anti-inflammatory formulations (2%) and anti-malarial drugs, cotton wool (medicinal) and ayurvedic medicaments (1% each) moved up.

The index for ‘Manufacture of Rubber and Plastics Products’ group declined by 0.1 percent to 108.6 (provisional) from 108.7 (provisional) for the previous month due to lower price of condoms (6%), rubberized dipped fabric (5%), polyester film (non-metalized) (4%), pvc fittings & other accessories (3%), processed rubber, plastic tube (flexible/non-flexible), plastic components, rubber crumb, polypropylene film and plastic tank (2% each) and plastic bag, acrylic/plastic sheet and plastic bottle (1% each). However, the price of rubber components & parts, conveyer belt (fibre based) and polythene film (3% each), rubber tread, rubber cloth/sheet, medium & heavy commercial vehicle tyre and thermocol (2% each) and cycle/cycle rickshaw tyre, v belt, motor car tube, tractor tyre, plastic box/container, plastic furniture and 2/3 wheeler tyre (1% each) moved up.

The index for ‘Manufacture of other Non-Metallic Mineral Products’ group rose by 1.9 percent to 111.4 (provisional) from 109.3 (provisional) for the previous month due to higher price of cement superfine (10%), ordinary portland cement (4%), ceramic tiles (vitrified tiles) and slag cement (3% each), pozzolana cement, non ceramic tiles, clinker and ordinary sheet glass (2% each) and railway sleeper, cement blocks (concrete), glass bottle, asbestos corrugated sheet, marble slab, stone, chip and lime and calcium carbonate (1% each).  However, the price of fibre glass incl. sheet (3%) and graphite rod, opthalmic lens and porcelain sanitary ware (1% each) declined.

The index for ‘Manufacture of Basic Metals’ group rose by 2.0 percent to 96.8 (provisional) from 94.9 (provisional) for the previous month due to higher price of angles, channels, sections, steel (coated/not) (10%), pig iron, sponge iron/direct reduced iron (dri) and gp/gc sheet (8% each), ms pencil ingots and hot rolled (hr) coils & sheets, including narrow strip (7% each), ms wire rods (5%), alloy steel wire rods, galvanized iron pipes, aluminium castings, cold rolled (cr) coils & sheets, including narrow strip, mild steel (ms) blooms and silicomanganese (3% each), stainless steel coils, strips & sheets and ferrosilicon (2% each) and lead ingots, bars, blocks, plates, stainless steel bars & rods, including flats, other ferro alloys, alumnium foil, aluminium shapes - bars/rods/flats, aluminium ingot, cast iron, castings, ms bright bars, aluminium powder and aluminium metal (1% each).  However, the price of ms castings (4%), alloy steel castings and stainless steel tubes (3% each), copper shapes - bars/rods/plates/strips (2%) and ferrochrome and zinc metal/zinc blocks (1% each) declined.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group rose by 1.1 percent to 108.1 (provisional) from 106.9 (provisional) for the previous month due to higher price of copper bolts, screws, nuts (29%), electrical stamping- laminated or otherwise (7%), iron/steel hinges and steel structures (4% each), boilers (3%), bolts, screws, nuts & nails of iron & steel, stainless steel razor and metal cutting tools & accessories (2% each) and steel drums and barrels, pressure cooker, steel door, steel pipes, tubes & poles and aluminium utensils (1% each).  However, the price of jigs & fixture (8%), hand tools and bracket (3% each), lock/padlock (2%) and forged steel rings (1%) declined.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group rose by 0.6 percent to 109.1 (provisional) from 108.5 (provisional) for the previous month due to higher price of colour TV and electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences (3% each), sunglasses (2%) and air conditioner and ups in solid state drives (1% each). However, the price of electronic printed circuit board (pcb)/micro circuit (1%) declined.

The index for ‘Manufacture of Electrical Equipment’ group declined by 0.2 percent to 108.3 (provisional) from 108.5 (provisional) for the previous month due to lower price of solenoid valve and electric switch (5% each), microwave oven and light fitting accessories (3% each), electrical resistors (except heating resistors) and washing machines/laundry machines  (2% each) and copper wire, transformer, domestic gas stove, electric switch gear control/starter, electrical relay/conductor and fan (1% each). However, the price of electric heaters (10%), connector/plug/socket/holder-electric (5%), acsr conductors (3%), aluminium wire (2%) and dry cells such as torch light batteries, aluminium/alloy conductor, electric wires & cables, insulator, rubber insulated cables, pvc insulated cable, insulating & flexible wire and refrigerators (1% each) moved up.

The index for ‘Manufacture of Machinery and Equipment’ group declined by 0.1 percent to 108.3 (provisional) from 108.4 (provisional) for the previous month due to lower price of excavator (5%), roller mill (raymond) (4%), pharmaceutical machinery (3%), grinding or polishing machine, drilling machine, conveyors - non-roller type, solar power system (solar panel & attachable equipment), injection pump and hydraulic equipment (2% each) and  gasket kit, agriculture implements, industrial valve, air filters, chemical equipment & system, pressure vessel and tank for fermentation & other food processing and mining, quarrying & metallurgical machinery/parts (1% each). However, the price of air or vacuum pump (9%), rice mill machinery (4%), moulding machine and mixing machine (3% each), harvesters and open end spinning machinery (2% each) and air gas compressor including compressor for refrigerator, deep freezers, machinery for plastic products - extruded, filtration equipment and centrifugal pumps (1% each) moved up.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 0.6 percent to 111.3 (provisional) from 110.6 (provisional) for the previous month due to higher price of chassis of different vehicle types (2%) and minibus/bus, engine, brake pad/brake liner/brake block/brake rubber, others, shafts of all kinds, axles of motor vehicles and head lamp (1% each). However, the price of crankshaft (2%) and cylinder liners and filter element (1% each) declined

The index for ‘Manufacture of Other Transport Equipment’ group rose by 0.8 percent to 109 (provisional) from 108.1 (provisional) for the previous month due to higher price of motor cycles (1%). However, the price of wagons (2%) and diesel/electric locomotive (1%) declined.

The index for ‘Manufacture of Furniture’ group declined by 2.6 percent to 114.2 (provisional) from 117.3 (provisional) for the previous month due to lower price of foam and rubber mattress (10%) and wooden furniture and plastic fixtures (2% each). However, the price of steel shutter gate (2%) and hospital furniture (1%) moved up.

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 2.90% in April, 2017 to 0.15% in May, 2017.

For the month of March, 2017, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 185.8 as compared to 185.3 (provisional) and annual rate of inflation based on final index stood at 5.99 percent as compared to 5.70 percent (provisional) respectively as reported on 14.04.2017.

The official Wholesale Price Index (WP) for June 2017 is scheduled for publication on July 14, 2017.