India’s wholesale price inflation jumps to 1.62% in June

The annual rate of inflation, based on the wholesale price index (WPI) stood at 1.62 per cent in June 2016, nearly doubling from the previous month's level, provisional estimates released by the government today showed.

The wholesale price inflation rate stood at 0.79 per cent in the previous month and (-) 2.13 per cent in June 2015.  Build-up of inflation in the financial year so far was 3.82 per cent compared to a build-up of 1.70 per cent in the corresponding period of the previous year.

Inflation rate for the primary articles group, which has a weight of 20.12 per cent in the wholesale price index, rose 2.9 per cent in June.

Among primary articles, the index for the 'food articles' group rose 2.9 per cent due to higher prices of fruits and vegetables, urad, gram, tea, maize, rice, wheat and barley, milk, mutton and fish. However, the prices of poultry chicken and pork, bajra, beef and buffalo meat moong and masur and ragi declined.

Inflation rate for the 'non-food articles' group rose 2.1 per cent due to higher prices of raw cotton, fodder, raw jute, raw wool, raw rubber, linseed, cotton seed rape and mustard seed, groundnut seed and sunflower.  However, the prices of      flowers, safflower (kardi seed), copra (coconut), castor seed,  gingelly seed, guar seed and niger seed and raw silk and mesta declined.

Inflation rate for the 'minerals' group rose 6.9 per cent in June due to higher prices of manganese ore, crude petroleum, iron ore, copper ore and chromite. However, the prices of sillimanite, phosphorite and magnesite declined.

Inflation rate for the `fuel and power' group (weight of 14.91 per cent in WPI) rose 3.4 per cent due to higher price of furnace oil, aviation turbine fuel, high speed diesel, petrol, kerosene and LPG. However, the prices of non-coking coal and bitumen declined.

Inflation rate for the `manufactured products' group (weight of 64.97 per cent in WPI) increased by 0.2 per cent in June 2016.

Among manufactured products, inflation rate for the 'food products' group rose 0.9 per cent due to higher price of tea dust (unblended), sooji (rawa), vanaspati, oil cakes, cotton seed oil, mixed spices, wheat flour (atta), groundnut oil and tea dust (blended) and gur, sugar, tea leaf (unblended), palm oil,  powder milk, gola (cattle feed), maida and mustard and rapeseed oil. However, the price of tea leaf (blended), processed prawn, gingelly oil and copra oil declined.

Inflation rate for the 'beverages, tobacco and tobacco products' group rose 0.8 per cent due to higher price of IMFL (blended), and cigarette. However, the price of      beer, rectified spirit and dried tobacco and soft drinks and carbonated water declined.

Inflation rate for the 'textiles' group rose 0.2 per cent due to higher prices of gunny and hessian cloth, tyre cord fabric, jute yarn, jute sacking cloth and cotton yarn.  However, the prices of manmade fabric and jute sacking bag declined.

Inflation rate for the 'wood and wood products' group declined by 0.2 per cent due to lower prices of plywood and fibre board. However, the price of timber / wooden planks and processed wood moved up.

Inflation rate for the 'paper and paper products' group rose 0.3 per cent due to higher prices of paper rolls and newsprint.

Inflation rate for the 'leather and leather products' group declined by 0.1 per cent due to lower prices of leather handbags/wallets, footwear/safety boot and other leather foot wear. However, the price of leather gloves and chrome tanned leather and leather shoe upper moved up.

Inflation rate for the 'rubber and plastic products' group rose 0.1 per cent due to higher prices of plastic products. However, the prices of tubes and rubber products declined.

Inflation rate for the 'chemicals and chemical products' group rose 0.5 per cent due to higher prices of ammonium sulphate, rubber chemicals, basic organic chemicals, paints, urea, polymers, non-cyclic compound, basic inorganic chemicals, antibiotics and dye & dye intermediates. However, the prices of lacquer and varnishes declined.

Inflation rate for the for 'non-metallic mineral products' group declined by 0.6 per cent due to lower prices of marbles and asbestos corrugated sheet. However, the price of railway sleeper and polished granite and lime moved up.

Inflation rate for the 'basic metals, alloys and metal products' group declined by 0.6 per cent due to lower prices of rounds, wire rods and billets, sponge iron,     pencil ingots and angles, melting scrap, GP/GC sheets, joist and beams and rebars and steel structures, plates,  pressure cooker, HRC, utensils (other than aluminium), CRC and metal containers. However, the prices of furniture, silver and gold & gold ornaments, pipes/tubes/rods/strips, aluminium and steel pipes and tubes moved up.

Inflation for the 'machinery and machine tools' group declined by 0.1 per cent due to lower prices of fibre optic cable, electric motor starters, grinding /wet coffee machinery and PVC insulated cable, ball/roller bearing, electric motors and machine tools.  However, the prices of lifts and heating elements, engines, insulators, industrial valves and washing / laundry machines moved up.

Inflation rate for the 'transport, equipment and parts' group rose 0.1 per cent due to higher price of tractors.

The final inflation rate for April 2016, based on the revised wholesale price index for all commodities stood at 0.79 per cent against the provisional estimate of 0.34 per cent estimated earlier.