WPI rate hits a 6-month high of 3.59% in October

The annual rate of inflation based on the wholesale price index (WPI) stood at 3.59 per cent in October 2017, against 2.60 per cent in the previous month and 1.27 per cent during the corresponding month of the previous year, provisional figures released by the Central Statistics Office (CSO) showed.

This is also the highest level the WPI-based inflation rate has reached in the past 6 months.

Build-up of inflation rate in the financial year so far was 2.03 per cent against 3.53 per cent in the corresponding period of the previous year

Inflation for the primary articles group, which has a weight 22.62 per cent in the wholesale price index, rose 2 per cent during October 2017.

Among primary articles, inflation rate for the 'food articles' group rose 2.2 per cent due to higher prices of fruits and vegetables, poultry chicken, egg, condiments and spices, barley and paddy. However, prices of betel leaves, ragi, gram, bajra, arhar, masur, jowar, moong, urad, rajma, maize, coffee and pork declined.

Inflation rate for the 'non-food articles' group declined by 0.9 per cent due to lower prices of raw cotton, fodder, mesta, cotton seed, raw rubber, safflower (kardi seed), castor seed, raw hides, raw jute, gingelly seed, guar seed and groundnut seed.

For the 'minerals' group inflation rate frose 1.1 per cent due to higher prices of sillimanite, lead concentrate, copper concentrate and zinc concentrate, manganese ore, bauxite and phosphorite.

For the 'crude petroleum and natural gas' group it rose 8.6 per cent due to higher prices of natural gas and crude petroleum, while for the 'fuel and power' group (weight of 13.15 per cent in WPI) it rose 3.1 per cent in October 2017.

Inflation rate for the 'mineral oils' group rose 3.9 per cent due to higher prices of LPG, naphtha, petroleum coke, ATF, furnace oil, kerosene, bitumen, HSD and petrol.

For the 'electricity' group it rose 4 per cent due to higher price of electricity.

Inflation rate for the `manufactured products' group, which has the highest weight f 64.23 per cent n the wholesale price index (WPI) rose 0.3 per cent in October 2017.

Among manufactured products, inflation rate for 'manufactured food products' group rose 0.1 per cent due to higher price of honey, meat, preserved / processed fish, crustaceans, molluscs and products thereof, instant coffee and coffee powder with chicory, mustard oil, manufacture of cocoa, chocolate and sugar confectionery, manufacture of macaroni, noodles, couscous and similar farinaceous products, buffalo meat, gur, rice bran oil, sooji (rawa), wheat flour (atta), spices (including mixed spices), groundnut oil, chicken/duck, processed ready to eat food,  starches and starch products, bagasse, processed and preserved fruit and vegetables and palm oil.

Inflation rate for the 'manufacture of beverages' group declined by 0.9 per cent due to lower prices of bottled mineral water, aerated drinks / soft drinks (incl. soft drink concentrates), wine and spirits.

For the 'manufactured tobacco products' group WPI rate declined by 1.3 per cent due to lower prices of cigarette and other tobacco products.

Inflation rate for the 'manufactured textiles' group declined by 0.2 per cent due to lower prices of cotton yarn and woollen yarn.

For the 'manufactured apparel' group, it rose 0.4 per cent due to higher prices of knitted and crocheted apparel.

Inflation rate for the 'manufacture of leather and related products' group declined by 0.1 per cent due to lower prices of leather shoe and harness, saddles and other related items and vegetable tanned leather.

For the 'manufactured wood and products of wood and cork ' group declined by 0.1 per cent due to lower prices of wooden panel and wooden block (compressed or not), plywood block boards and wooden splint.

Inflation rate for the 'Manufactured paper and paper products' group rose 0.3 per cent due to higher prices of card board, base paper and paper for printing and writing, laminated plastic sheet and map litho paper.

Inflation rate for the 'printing and reproduction of recorded media ' group declined by 1 per cent due to lower prices of printed labels/posters/calendars, newspaper and printed books.

For the 'manufacture of chemicals and chemical products' group rose  0.4 per cent due to higher prices of sulphuric acid, carbon black and menthol, camphor, catalysts, phthalic anhydride and polyester chips or polyethylene terepthalate chips, superphospate / phosphatic fertilizer, others, ammonia gas, alkyl benzene, viscose staple fibre, aromatic chemicals, caustic soda (sodium hydroxide), ethylene oxide, organic solvent, acrylic fibre and mosquito coil and phosphoric acid, amine, poly propylene, oleoresin, acetic acid and its derivatives, ammonium nitrate, sodium silicate, detergent cake, washing soap cake/bar/powder, explosive, ammonium phosphate, fatty acid, other inorganic chemicals, adhesive excluding gum, gelatine, shampoo, dye stuff/dyes incl. dye intermediates and pigments/colours and liquid air and other gaseous products. 

Inflation rate for the 'manufacture of pharmaceuticals, medicinal chemical and botanical products' group rose 0.5 per cent due to higher prices of anti cancer drugs, ayurvedic medicaments, antibiotics and preparations thereof, antipyretic, analgesic, anti-inflammatory formulations and medical accessories and API and formulations of vitamins.

For the 'manufactured rubber and plastics products' group, the inflation rate rose 0.7 per cent due to higher prices of V-belts, plastic box / container, tooth brush, 2/3 wheeler tyre and rubberised dipped fabric as also rubber tube and plastic tape and rubber moulded goods, polyester film (non-metalized), thermocol, PVC fittings and other accessories, plastic bag, polypropylene film, plastic furniture, plastic tank and rubber components and parts.

Inflation rate for the 'manufacture of other non-metallic mineral products' group declined by 0.1 per due to lower price of ordinary sheet glass, ordinary portland cement and poles and posts of concrete, pozzolana cement, plain bricks and cement superfine.

For the 'manufacture of basic metals' group it rose 0.3 per cent due to higher prices of angles, channels, sections, steel, ferrosilicon, aluminium powder and aluminium ingot, MS castings, stainless steel coils, strips and sheets, stainless steel tubes, zinc metal/zinc blocks, ferrochrome, hot rolled (HR) coils and sheets, including narrow strip, cold rolled (CR) coils and sheets, including narrow strip, aluminium disk and circles and brass metal/sheet/coils and lead ingots, bars, blocks, plates, steel cables, aluminium shapes-bars/rods/flats, copper shapes-bars/rods/plates/strips, aluminium metal, copper metal/copper rings, MS wire rods and GP/GC sheet.

Inflation rate for the 'manufacture of fabricated metal products, except machinery and equipment' group rose 0.3 per cent due to higher prices of hand tools, forged steel rings, steel drums and barrels and cylinders and steel container and bracket.

Inflation rate for the 'manufacture of computer, electronic and optical products' group rose 2.4 per cent due to higher prices of telephone sets, including mobile handsets, microscope, meter (non-electrical), capacitors, scientific time keeping device and colour TV and air conditioner.

For the 'manufacture of machinery and equipment' group, it rose 0.8 per cent due to higher prices of pressure vessel and tank for fermentation and other food processing, precision machinery equipment/form tools, chillers, open end spinning machinery, printing machinery and pharmaceutical machinery, roller and ball bearings, manufacture of bearings, gears, gearing and driving elements and air filters and industrial valve, agriculture implements, concrete vibrator and mixture, air or vacuum pump, material handling, lifting and hoisting equipment, sewing machines, centrifugal pumps and cranes.

Inflation rate for the 'manufacture of motor vehicles, trailers and semi-trailers' group rose 0.1 per cent due to higher prices of brake pad/brake liner/brake block/brake rubber, others and minibus/bus, axles of motor vehicles, piston ring/piston and compressor, radiators and coolers and crankshaft.

For the 'manufacture of other transport equipment' group, it rose 0.2 per cent due to higher prices of propellers and blades of boats/ships. 

Inflation rate for the 'manufacture of furniture' group rose 3.7 per cent due to higher prices of foam and rubber mattress, wooden furniture and steel shutter gate.

Inflation rate for the 'other manufacturing' group rose 1.2 per cent due to higher prices of stringed musical instruments (incl. santoor, guitars, etc) cricket bat, silver and gold and gold ornaments.

The WPI-based food price inflation increased from 1.99 per cent in September 2017 to 3.23 per cent in October 2017.

The final inflation rate based on the wholesale price index for 'all commodities' and annual rate of inflation remained unchanged at its provisional level of 3.24 per cent as reported earlier.