At -2.36%, India's WPI inflation remains negative for a seventh month in May

news
15 June 2015

The annual rate of inflation based on the wholesale price index (WPI) stood at -2.36 per cent in May, continuing its fall for the seventh successive month, on the back of plunging oil and manufacturing goods prices, official data showed on Monday.

India's WPI inflation stood at -2.65 per cent in the previous month and 6.18 per cent during the corresponding month of the previous year.

Build-up of inflation rate in the financial year so far was 0.91 per cent compared to a build-up of 0.94 per cent in the corresponding period of the previous year.

Wholesale fuel prices in May fell 10.51 per cent year-on-year, while costs of manufacturing goods edged down 0.64 per cent from a year ago.

The index for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, rose by 1.3 per cent.

Among primary articles, the index for the 'food articles' group rose by 0.5 per cent due to higher price of gram, urad, arhar, masur, tea, moong, fish, egg, jowar, condiments & spices and milk.

However, the price of beef and buffalo meat, pork, poultry chicken, barley, ragi, maize, wheat, coffee and fruits and vegetables declined.

The index for the 'non-food articles' group rose by 5.1 per cent due to higher price of soyabean, guar seed, sugarcane, flowers, raw wool, logs and timber, groundnut seed, raw rubber, raw cotton, castor seed, sunflower, cotton seed, safflower (kardi seed), mesta, rape and mustard seed and raw jute. However, the price of raw silk, gingelly seed, niger seed, copra and fodder declined.

The index for the 'minerals' group rose by 0.4 per cent to 247.7 due to higher price of sillimanite, crude petroleum and zinc concentrate and copper ore. However, the price of barytes, manganese ore, magnesite and chromite and iron ore declined.

The index for the `fuel and power' group (weight of 14.91 per cent in WPI) rose by 3.0 per cent due to higher price of furnace oil, petrol, high speed diesel, bitumen, electricity (agricultural) and electricity (railway traction), electricity (industry) and electricity (domestic).

The index for the `manufactured group', which has the highest weight of 64.97 per cent in the WPI, rose by 0.2 per cent from the previous month.

Among manufactured goods, the index for the 'food Products' group rose by 1.1 per cent due to higher price of tea dust (blended), gram powder (besan), oil cakes, tea leaf (blended), copra oil, mustard and rapeseed oil, sunflower oil, vanaspati, bakery products, mixed spices, groundnut oil and rice bran oil.

However, the price of gola (cattle feed), tea dust (unblended), khandsari, tea leaf (unblended), wheat flour (atta) and soyabean oil declined.

The index for the 'beverages, tobacco and tobacco products' group declined by 0.2 per cent due to lower price of cigarette. However, the price of beer moved up.

The index for the 'textiles' group declined by 0.1 per cent due to lower price of tyre cord fabric, manmade fibre and cotton yarn. However, the price of jute sacking bag, woolen textiles and cotton fabric moved up.

The index for the 'wood and wood products' group rose by 0.5 per cent due to higher price of  timber / wooden planks.

The index for the 'paper and paper products' group declined by 0.2 per cent due to lower price of kraft paper and bags and corrugated sheet boxes. However, the price of paper cartons / boxes and paper pulp moved up.

The index for 'leather and leather products' group rose by 1.2 per cent due to higher price of leather footwear.

The index for the 'rubber and plastic products' group rose by 0.5 per cent due to higher price of tyres and plastic products.

The index for the 'chemicals and chemical products' group rose by 0.1 per cent due to higher price of washing soap, paints and non-cyclic compound, explosives, ayurvedic medicines, pigment and pigment intermediates. However, the price of rubber chemicals, dye and dye intermediates and basic organic chemicals declined.

The index for the 'non-metallic mineral products' group declined by 0.4 per cent due to lower prices of marbles and grey cement. However, the price of bricks and tiles, slag cement and railway sleeper moved up.

The index for the 'basic metals, alloys and metal products' group declined by 0.1 per cent due to lower price of plates, wire rods, rounds, billets, pencil  ingots, GP/QC sheets, melting scrap, CRC and angles and pig iron, rebars, sponge iron, joist and beams, ferro manganese, aluminium, gold and gold ornaments, HRC and ferro chrome.

However, the price of copper products (other than wire), steel rods, brass, pipes/tubes/rods/strips, iron castings, pressure cooker, silver, metal containers, steel (pipes and tubes and sheets) moved up.

The index for the 'transport, equipment and parts' group rose by 0.1 per cent due to higher price of  shafts (all kinds) and railway brake gear.

The final inflation rate for March 2015 remained unchanged at its provisional level of -2.33 per cent as the final wholesale price index for 'all commodities' remained unchanged.





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