Wholesale price inflation zooms to a 23-month high of 3.55% in July

The annual rate of inflation in the country, based on the wholesale price index (WPI), zoomed to a 23-month high of 3.55 per cent in July, on the back of a spurt in the prices of vegetables, pulses and sugar.

Wholesale inflation was last at a higher level in August 2014, at 3.74 per cent.

The WPI-based inflation stood at 1.62 per cent in June this year while it was at a low (-) 4 per cent in July 2015, provisional figures released by the commerce ministry showed.

Build-up of inflation rate in the financial year so far was 4.91 per cent compared to a build-up of 0.85 per cent in the corresponding period of the previous year.

WPI inflation, which was in the negative zone from November 2013 to March 2016, has been firming up over the last four months.

The index for this major group, which has a 20.12 per cent weight in the wholesale price index, rose 2.5 per cent in July compared to the previous month.

Among primary articles, inflation rate for the 'food articles' group rose 2.4 per cent in July due to higher prices of gram, fruits and vegetables, egg, maize, barley and coffee, beef & buffalo meat, jowar, wheat, urad, rice, masur and pork. However, the prices of poultry chicken, mutton, fish, ragi, moong, bajra and tea declined.

Inflation rate for the 'non-food articles' group rose 2.3 per cent due to higher prices of raw cotton, guar seed, castor seed and raw rubber, linseed and cotton seed, raw wool and rape and mustard seed and niger seed, safflower (kardi seed) and groundnut seed. However, the prices of gingelly seed, soyabean, flowers, raw jute and mesta declined.

Inflation rate for the 'minerals' group rose 5.0 per cent due to higher prices of manganese ore, crude petroleum,  iron ore and copper ore. However, the prices of sillimanite, zinc concentrate, chromite and phosphorite declined.

The index for the `fuel and power' group (WPI weight of 14.91 per cent) rose 0.8 per cent due to higher prices of non-coking coal, aviation turbine fuel and furnace oil. However, the price of petrol and bitumen declined.

The index for the `manufactured products' group, the largest group in the WPI (weight of 64.97 per cent) rose 0.3 per cent in July compared to the previous month.

Among manufactured products, inflation for the 'food products' group rose 1.2 per cent due to higher prices of tea leaf (unblended), tea dust (unblended), wheat flour (atta), gur and sooji (rawa), maida, groundnut oil, khandsari, sugar and tea dust (blended), ghee, mustard and rapeseed oil and oil cakes. However, the prices of coffee powder and copra oil, gola (cattle feed), vanaspati and sunflower oil declined.

Inflation rate for the 'textiles' group rose 0.4 per cent due to higher prices of jute sacking cloth, cotton yarn and manmade fabric. However, the prices of gunny and hessian cloth declined.

Inflation rate for the 'wood and wood products' group declined by 0.3 per cent due to lower prices of timber/wooden planks and processed wood. However, the price of plywood and fibre board moved up.

Inflation rate for the 'paper and paper products' group rose 0.5 per cent due to higher prices of corrugated sheet boxes, books/periodicals/journals and newsprint.

However, the price of computer stationery declined.

Inflation rate for the 'leather and leather products' group rose 0.5 per cent due to higher price of leather.

Inflation rate for the 'rubber and plastic products' group rose 0.3 per cent due to higher prices of tubes and rubber products.

Inflation rate for the 'chemicals and chemical products' group rose 0.1 per cent due to higher prices of tooth paste/tooth powder and hair/body oils, photographic goods, pesticides and basic inorganic chemicals. However, the price of diammonium phosphate and lacquer and varnishes declined.

Inflation rate for the 'non-metallic mineral products' group rose 0.5 per cent due to higher prices of marbles, glass bottles and bottleware, grey cement and lime.  However, the prices of railway sleeper and asbestos corrugated sheet declined.

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

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

The final inflation rate based on the revised wholesale price index for 'all commodities' for May 2016 stood at 1.24 per cent against the 0.79 per cent provisionally estimated earlier.