WPI inflation rises to 6.01% in May

Details:

Index Numbers of Wholesale Price in India [WPI] (Base: 2004-05=100)
Review for the month of May, 2014

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of May, 2014 rose by 0.8 percent to 181.7 (provisional) from 180.2 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 6.01% (provisional) for the month of May, 2014 (over May,2013) as compared to 5.20% (provisional) for the previous month and 4.58% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.78% compared to a build up rate of 0.76% 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 1.8 percent to 246.8 (provisional) from 242.5 (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 2.3 percent to 244.3 (provisional) from 238.8 (provisional) for the previous month due to higher price of coffee (23%), poultry chicken (7%), fish-inland (6%), tea and fruits & vegetables (4% each), condiments & spices, fish-marine, urad and masur (3% each), rice and moong (2% each) and       milk, barley, pork, mutton and arhar (1% each).  However, the price of maize (5%), wheat and ragi (2% each) and       egg, jowar and gram (1% each) declined.

The index for `Non-Food Articles` group rose by 1.2 percent to 218.8 (provisional) from 216.3 (provisional) for the previous month due to higher price of  guar seed (13%), soyabean (10%), copra (coconut) (8%), tobacco (7%),      raw jute (5%), raw silk (3%), mesta (2%) and groundnut seed, raw cotton and cotton seed (1% each).  However, the price of gingelly seed and flowers (8% each), fodder (3%) and linseed, castor seed and sunflower (1%) declined.

The index for `Minerals` group declined by 0.7 percent to 348.5 (provisional) from 350.8 (provisional) for the previous month due to lower price of steatite and zinc concentrate (8% each), iron ore (3%) and chromite and crude petroleum (1% each).  However, the price of copper ore (5%) and barytes (1%) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.5 percent to 212.1 (provisional) from 211.0 (provisional) for the previous month due to higher price of electricity (agricultural) and electricity (railway traction) (3% each), electricity (commercial), electricity (domestic), light diesel oil and electricity (industry) (2% each) and high speed diesel (1%).  However, the price of furnace oil (2%) and aviation turbine fuel, LPG and petrol (1% each) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.5 percent to 154.6 (provisional) from 153.8 (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 0.5 percent to 170.9 (provisional) from 170.1 (provisional) for the previous month due to higher price of tea leaf (unblended) (11%), tea leaf (blended) (8%), gur and bakery products   (4% each), gola (cattle feed) and processed prawn (3% each), copra oil and ghee (2% each) and mixed spices,     khandsari and oil cakes (1% each).  However, the price of tea dust (unblended) (3%), groundnut oil and gingelly oil  (2% each) and soyabean oil and sunflower oil (1% each) declined.

The index for `Beverages, Tobacco & Tobacco Products` group rose by 0.9 percent to 197.6 (provisional) from 195.8 (provisional) for the previous month due to higher price of dried tobacco (8%) and cigarette (2%).

The index for `Textiles` group rose by 0.1 percent to 142.7 (provisional) from 142.6 (provisional) for the previous month due to higher price of man made fabric, jute sacking cloth, jute sacking bag and cotton fabric (1% each).  However, the price of jute yarn (4%) and tyre cord fabric and gunny and hessian cloth (1% each) declined.

The index for `Wood & Wood Products` group rose by 2.4 percent to 188.3 (provisional) from 183.8 (provisional) for the previous month due to higher price of timber / wooden planks (5%) and plywood & fibre board (3% each).

The index for `Paper & Paper Products` group rose by 2.2 percent to 149.7 (provisional) from 146.5 (provisional) for the previous month due to higher price of paper for printing / poster (10%), newsprint (6%), printing and writing paper (4%), card board and books/ periodicals/ journals (3% each), kraft  paper & bags and maplitho paper (2% each) and paper rolls (1%).  However, the price of cream laid woven paper (1%) declined.

The index for `Leather & Leather Products` group declined by 0.3 percent to 144.7 (provisional) from 145.2 (provisional) for the previous month due to lower price of leather garments & jackets (3%).

The index for `Rubber & Plastic Products` group rose by 0.5 percent to 150.1 (provisional) from 149.4 (provisional) for the previous month due to higher price of rubber products and plastic products (1% each).

The index for `Chemicals & Chemical Products` group rose by 0.4 percent to 152.9 (provisional) from 152.3 (provisional) for the previous month due to higher price of hair / body oils, turpentine oil and ammonium sulphate    (7% each), dye & dye intermediates (2%) and antibiotics, basic organic chemicals, basic inorganic chemicals and pesticides (1% each).  However, the price of non-cyclic compound, pigment & pigment intermediates and      washing soap (1% each) declined.

The index for `Non-Metallic Mineral Products` group declined by 0.1 percent to 168.1 (provisional) from 168.2 (provisional) for the previous month due to lower price of polished granite, grey cement and railway sleeper (1% each).  However, the price of marbles (9%) moved up.

The index for `Basic Metals, Alloys & Metal Products` group rose by 0.9 percent to 166.9 (provisional) from 165.4 (provisional) for the previous month due to higher price of zinc (5%), melting scrap and fixtures (4% each), sheets and steel castings (3% each), billets and pig iron (2% each) and rebars, wire rods, pencil  ingots, CRC, steel structures, furniture, plates, iron castings, sponge iron, gp/gc sheets, angles, HRC, metal containers and steel rods (1 % each).  However, the price of ferro manganese (3%), pressure cooker (2%) and copper / copper ingots, ferro silicon, brass and iron & steel wire (1% each) declined.

The index for `Machinery & Machine Tools` group rose by 0.2 percent to 133.3 (provisional) from 133.0 (provisional) for the previous month due to higher price of fibre optic cable (16%), battery dry cells (12%),     regulators (5%), electric motor starters, communication equipments and lifts (3% each), pump & assembly,     insulators and electric motors (2% each) and thresher and machine tools (1% each).  However, the price of      ball/roller bearing (3%) and grinding /wet coffee machinery (2%) declined.

The index for `Transport, Equipment & Parts` group rose by 0.1 percent to 135.8 (provisional) from 135.7 (provisional) for the previous month due to higher price of slider (3%), geared motor (2%) and fuel injection equipments and piston & compressor (1% each).  However, the price of shafts (all kinds) (2%) declined.

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

For the month of  March, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 180.3 as compared to 179.8 (provisional) and annual rate of inflation based on final index stood at 6.00 percent as compared to 5.70 percent respectively as reported on 14.04.2014.