Wholesale price inflation at (-) 4.54% in September as oil continues to tumble

news
14 October 2015

India's inflation rate based on the wholesale price index fell for the eleventh straight month in September, plunging to an annual (-)4.54 per cent on the back of falling oil prices, preliminary data released today showed.

WPI inflation stood at (-)4.95 per cent in August while it was 2.38 per cent during the corresponding month of the previous year.

Build-up of inflation in the financial year so far was 0.28 per cent compared to a build-up rate of 2.61 per cent in the corresponding period of the previous year.

The wholesale prices of fuel fell 1.71 per cent year-on-year in September 2015 from a year ago month while prices of manufactured goods declined by 1.73 per cent and that of wood and wood products declined by 2.2 per cent.

Food prices, however, inched up 0.69 per cent year-on-year last month.

Inflation rate for the 'primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, rose by 0.4 per cent in September 2015.

Among primary articles, inflation rate for the 'food articles' group rose 0.6 per cent during the month due to higher price of arhar, fish, pork, bajra, gram and urad as also fruits and vegetables, condiments and spices, wheat, barley and ragi. However, the price of poultry chicken, beef and buffalo meat, fish, egg, tea, maize, jowar and moong declined.

Inflation for the 'non-food articles'  group rose 1.3 per cent due to higher price of cotton seed, raw silk, guar seed, groundnut seed, raw jute, linseed, sunflower, castor seed, rape and mustard seed, soyabean and fodder. However, the price of gingelly seed, raw rubber and safflower (kardi seed) and copra (coconut) declined.

'Minerals'  group declined by 4.3 per cent due to lower price of zinc concentrate, sillimanite, crude petroleum, phosphorite, manganese ore, magnesite and iron ore. However, the price of copper ore and chromite moved up.

'Fuel and power' group, which has a weight of 14.91 per cent in the WPI, declined by 1.7 per cent in September due to lower prices of  aviation turbine fuel, furnace oil, petrol, high speed diesel, bitumen, kerosene and electricity (for industrial use). However, the price of electricity (for agricultural, commercial and domestic use) moved up.

Inflation rate for the 'manufactured products' group, which has a weight of 64.97 per cent in the WPI, rose 0.1 per cent in September 2015.

Among manufactured products, inflation for the 'food products' group rose 0.8 per cent due to higher price of sugar, sunflower oil, oil cakes, tea leaf (unblended), mixed spices, gur, cotton seed oil, rice bran oil, mustard and rapeseed oil and groundnut oil. However, the price of sugar confectionary, tea dust (blended), copra oil, processed prawn, palm oil, soyabean oil, bakery products, khandsari, tea leaf (blended), powder milk and sooji (rawa) declined.

Inflation rate for the 'beverages, tobacco and tobacco products' group declined by 0.1 per cent due to lower price of dried tobacco, soft drinks and carbonated water.

The 'textiles' group declined by 0.4 per cent due to lower prices of manmade fibre and fabric and cotton yarn. However, the price of jute sacking bag, gunny and hessian cloth, jute sacking cloth and jute yarn moved up.

For the 'wood and wood products' group inflation declined by 2.2 per cent due to lower price of plywood and fibre board.

Inflation rate for the 'paper and paper products' group rose 0.1 per cent due to higher prices of printing and writing paper and paper rolls.

For the 'leather and leather products' group the inflation rate rose 0.3 per cent due to higher price of leather footwear.

Inflation rate for the 'rubber and plastic products' group declined by 0.5 per cent due to lower price of plastic products.

The 'chemicals and chemical products' group saw a decline of 0.3 per cent in inflation due to lower prices of rubber chemicals, synthetic resin and safety matches/ match box, non-cyclic compound, antacid and digestive preparations, thinner and basic organic chemicals. However, the price of agarbattis, ayurvedic medicines, pesticides, lacquer and varnishes, pigment and pigment intermediates, explosives and ammonium sulphate moved up

Inflation rate for the 'non-metallic mineral products' group rose 0.8 per cent due to higher price of grey cement, polished granite and slag cement. However, the price of marbles declined.

Inflation rate for the 'basic metals, alloys and metal products' group rose 0.5 per cent due to higher price of rounds and wire rods, pencil ingots, sheets and plates, gold gold ornaments, billets, pig iron, steel castings, iron castings, joist and beams, CRC, rebars and angles.

However, the price of steel structures, zinc and ferro chrome, iron and steel wire, steel rods, ferro manganese, GP/GC sheets, brass, copper/copper ingots and steel pipes and tubes declined.

Inflation rate for the 'transport, equipment and parts' group rose 0.1 per cent due to higher price of railway brake gear. However, the prices of railway axle and wheel and auto rickshaw/tempo/matador declined.

The final inflation rate for July 2015 stood at -4.00 per cent, against the previous estimate of -4.05 per cent (provisional) on the basis of the revised index for all commodities for the month.





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