Pricey onion pushes up WPI inflation to a 6-month high of 6.1%

A spurt in the prices of onion amidst generally high prices of vegetables pushed inflation rate in India to 6.1 per cent in August, up from 5.7 per cent in July.

This the third successive monthly increase in the wholesale price-based inflation rate since June this year.

The annual rate of inflation based on the wholesale price index stood at 6.10 per cent in August 2013 compared to 5.79 per cent in the previous month and 8.01 per cent during the corresponding month of the previous year.

Build-up of inflation in the financial year so far was 3.91 per cent compared to a build-up of 4.35 per cent in the corresponding period of the previous year.

The spike in the index number was due mainly to a 245 per cent year-on-year increase in the prices of onion even as vegetable prices in general showed an increase of 77.81 per cent year-on-year.

The high increase in prices was also seen in other essential food items like rice, cereals, egg, meat and fish.

The index for the primary articles group rose by 3.8 per cent in August, compared to July.

Among primary articles, the index for the 'food article ' group rose by 5.3 per cent in August month-on-month due to higher price of fish (up 22 per cent), fruits and vegetables (up 13 per cent), ragi and beef and buffalo meat (up 3 per cent each), milk (up 2 per cent) and rice, mutton, poultry chicken and pork (up 1 per cent each).

However, the price of bajra and gram declined by 4 per cent each while tea prices fell 3 per cent and jowar prices were down 2 per cent and moong, egg and masur prices declined by 1 per cent each.

The index for 'non-food articles' group declined by 0.5 per cent month-on-month due to a decline in the prices of soyabean (by 12 per cent), guar seed (10 per cent), groundnut seed (5 per cent), raw jute (4 per cent), safflower, logs and timber and linseed (3 per cent each), niger seed and rape and mustard seed (2 per cent each) and mesta (1 per cent). However, the price of flowers (up 15 per cent), copra (5 per cent), raw cotton, coir fibre and raw silk (3 per cent each), sunflower and cotton seed (2 per cent each) and fodder and castor seed (1 per cent each) moved up.

The index for the 'minerals' group rose 0.7 per cent due to an increase in the prices of dolomite (up 10 per cent), sillimanite (up 6 per cent), crude petroleum and limestone (up 1 per cent each).  However, the price of barytes (down 13 per cent), zinc concentrate (down 5 per cent) and chromite and copper ore (1 per cent each) declined.

The index for the `fuel and power' rose 1.3 per cent due to an increase in the price of aviation turbine fuel (up 7 per cent), light diesel oil (up 4 per cent), kerosene, LPG and petrol (up 3 per cent each) and naphtha, bitumen and high speed diesel (up 2 per cent each). However, the price of furnace oil (down 2 per cent) declined.

The index for the 'manufactured products' group declined by 0.1 per cent year-on-year in August 2013.

Among manufactured products, the index for the 'food products' group declined by 0.7 per cent due to lower price of blended tea leaf (down 15 per cent), unblended tea leaf (down 6 per cent), oil cakes (down 4 per cent), groundnut oil (down 2 per cent) and bakery products, mixed spices, cotton seed oil, palm oil and cattle feed (down 1 per cent each).  However, the price of copra oil (up 9 per cent), gur, coffee powder, processed prawn and sooji (2 per cent each) and maida, gingelly oil, rice bran oil and sugar (up 1 per cent each) moved up.

The index for the 'beverages, tobacco and tobacco products' group declined by 0.1 per cent due to lower price of chewing tobacco and dried tobacco (down 2 per cent each) and beer (down 1 per cent). However, the price of rectified spirit moved up by 1 per cent.

The index for the 'textiles' group rose by 0.7 per cent due to higher price of cotton yarn and man-made fibre (up 2 per cent each) and woollen textiles and tyre cord fabric (up 1 per cent each). However, the price of gunny and hessian cloth, jute sacking cloth and jute sacking bag declined by 1 per cent each.

The index for the 'wood and wood products' group rose by 0.8 per cent due to a 1 per cent increase in the prices of timber/wooden planks, plywood, fibre board and processed wood.

The index for the 'paper and paper products' group declined by 0.1 per cent due to lower prices of maplitho paper and printing / poster paper (down 1 per cent each). However, the price of laminated paper declined by 4 per cent while prices of paper cartons / boxes moved up by 2 per cent each.

The index for the 'leather and leather products ' group declined by 0.1 per cent due to a 1 per cent decline in the price of leather footwear.

The index for the 'non-metallic mineral products' group declined by 1.3 per cent due to a decline in the price of white cement (down 3 per cent), grey cement (down 2 per cent) and slag cement (down 1 per cent).  However, the price of marbles moved up by 3 per cent.

The index for the 'basic metals, alloys and metal products' group rose 0.2 per cent due to higher price of silver and gold and gold ornaments (up 5 per cent each), metal containers (up 3 per cent), steel structures, aluminium and ferro manganese (up 2 per cent each) and copper / copper ingots (up 1 per cent).  However, the price of furniture (down 10 per cent), sponge iron (down 3 per cent), melting scrap (down 2 per cent) and ferro silicon, pencil ingots, wire rods, GP/GC sheets, angles and billets (down 1 per cent) declined.

The index for the 'machinery and machine tools' group declined by 0.5 per cent due to lower price of electric generators (down 12 per cent), fibre optic cable (down 7 per cent), electronic PCB / micro circuit (down 4 per cent), dry cell battery, TV accessories and boiler and accessories (down 2 per cent each) and batteries and hydraulic equipment (down 1 per cent each). 

However, the price of ball / roller bearing (up 7 per cent) and PVC insulated cable, pump and assembly, heat exchanger, material handling equipments, capacitors, harvester and electrical pumps (up 1 per cent each) moved up.

The index for the 'transport, equipment and parts' group rose 0.4 per cent due to a 1 per cent increase in the price of auto parts and motor vehicles.  However, the price of railway axle and wheel declined by 2 per cent while prices of parts of ships/boats etc declined by 1 per cent.

The CSO, meanwhile, revised the final wholesale price index for June 2013 to 5.16 per cent against the 4.86 per cent reported earlier after receiving the revised wholesale price index for 'all commodities'.