WPI inflation still negative at -3.81% despite zooming food prices

news
19 November 2015

The annual rate of inflation based on the wholesale price index (WPI) stood at -3.81 per cent (provisional) in October 2015 against - 4.54 per cent in the previous month and 1.66 per cent during the corresponding month of the previous year.

And despite skyrocketing of prices of pulses like urad and arhar dal, build-up of inflation in the financial year so far too was 0.34 per cent compared to a build-up of 1.89 per cent in the corresponding period of the previous year.

The wholesale price index for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index (WPI), remained unchanged at its previous month level.

Among primary articles, the index for the 'food articles' group rose 0.3 per cent due to higher price of urad, arhar, gram, moong, barley, jowar, masur, pork and condiments and spices, wheat, tea and bajra. However, the price of poultry chicken, beef and buffalo meat and fish, maize and coffee declined.

The index for the 'non-food articles' group rose 0.2 per cent due to higher prices of soyabean, raw jute, cotton seed, rape and mustard seed and flowers, raw rubber and fodder. However, the price of groundnut seed, copra (coconut), raw cotton, castor seed, guar seed and gingelly seed declined.

The index for the 'minerals' group declined by 5.0 per cent due to lower price of iron ore, zinc concentrate, crude petroleum and manganese ore. However, the price of copper ore and sillimanite moved up.

The index for the `fuel and power' group, which has a weight of 14.91 per cent, rose by 0.5 per cent due to higher price of aviation turbine fuel and high speed diesel. However, the price of bitumen, furnace oil and LPG declined.

The index for the `manufactured products' group, which has a weight of 64.97 per cent, remained unchanged at its previous month's level.

Among manufactured products, the index for the 'food products' group rose 0.8 per cent due to higher prices of sooji (rawa), soyabean oil, khandsari and oil cakes, mustard and rapeseed oil, gola (cattle feed), rice bran oil, cotton seed oil, groundnut oil, maida, sunflower oil, mixed spices, sugar, wheat flour (atta), tea dust (blended) and gur.

However, the price of tea dust (unblended), bakery products, gingelly oil and tea leaf (unblended) declined.

The index for the 'textiles' group declined by 0.5 per cent due to lower price of tyre cord fabric and cotton yarn, manmade fibre, jute sacking bag and manmade fabric. However, the price of gunny and hessian cloth and jute sacking cloth moved up.

The index for the 'wood and wood products' group rose 0.1 per cent due to higher price of processed wood.
 
The index for the 'paper and paper products' group rose 0.2 per cent due to higher price of paper pulp and kraft paper and bags and corrugated sheet boxes. However, the price of paper cartons/boxes and newsprint declined.

The index for the 'leather and leather products' group declined by 0.1 per cent due to lower price of footwear/safety boot. However, the prices of crome tanned leather as well as chappals, sandals, handbags  and wallets made of leather moved up.

The index for the 'rubber and plastic products' group declined by 0.7 per cent due to lower prices of rubber and plastic products.
 
The index for the 'non-metallic mineral products' group rose by 0.6 per cent due to higher price of marbles. However, the price of polished granite and glass bottles and bottleware declined.

The index for the 'basic metals, alloys and metal products' group declined by 0.5 per cent due to lower price of pencil ingots, angles, metal containers, iron castings, rebars, joist and beams, steel pipes and tubes, rounds, wire rods, billets, ferro manganese, steel castings,     iron and steel wire, melting scrap, aluminium, nuts/bolts/screw/ washers, GP/GC sheets, steel rods and plates. However, the price of pressure cooker, silver and HRC, sheets, CRC and gold and gold ornaments moved up.

The index for the 'transport, equipment and parts' group declined by 0.1 per cent due to lower price of railway brake gear and motor cycle, scooter and moped. However, the price of railway axle and wheel and auto rickshaw / tempo / matador moved up.

The annual rate of inflation based on final index for August 2015 stood revised at -5.06 per cent compared to -4.95 per cent as reported earlier.





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