WPI rises marginally in December

news
16 January 2017

India's wholesale price inflation rose marginally to 3.39 per cent in December despite a 33-per cent fall in vegetable prices while the consumer price data released a few days ago showed a marginal fall in retail inflation rate.

The annual rate of inflation based on the wholesale prices index (WPI) rose marginally to 3.39 per cent in December 2016 from 3.15 per cent in the previous month, due to a hardening of the prices of manufactured products and fuel.

Wholesale price inflation stood at (-) 1.06 per cent during the corresponding month of the previous year.

Build-up of inflation rate in the financial year so far stood at 4.28 per cent compared with a build up rate of 0.40 per cent in the corresponding period of the previous year, provisional figures released by the CSO showed.
 
Inflation rate for the 'primary articles' group, which has a weight of 20.12 per cent in the wholesale price index (WPI), declined by 1.2 per cent in December 2016 compared to the previous month.

Inflation rate for the 'food articles' group declined by 2.2 per cent due to lower prices of fruits and vegetables, arhar, masur, urad, moong, gram and poultry chicken. However, the price of ragi, jowar and wheat, bajra and  egg, barley, pork, condiments and spices, tea and fish-inland moved up.
 
Inflation rate for the 'non-food articles' group rose 1.9 per cent due to higher prices of flowers, raw rubber, copra (coconut) and groundnut seed, raw silk, gingelly seed and raw cotton and soyabean, sugarcane and safflower. However, the price of raw jute, sunflower, rape and mustard seed, coir fibre, niger seed, linseed and raw wool declined.

Inflation rate for the 'minerals' group rose 2.8 per cent due to higher prices of magnesite and sillimanite, manganese ore, iron ore, phosphorite and crude petroleum and chromite. However, the price of copper ore declined.

Inflation rate for the `fuel and power' group (weight of 14.91 per cent in WPI) rose 0.7 per cent due to higher prices of furnace oil, kerosene, petrol, LPG and high speed diesel. However, the price of aviation turbine fuel and bitumen declined.

Inflation rate for the `manufactured products' group (weight of 64.97 per cent in WPI) rose 0.1 per cent in December compared to the previous month.

Among manufactured products, the index for the 'food products' group declined by 0.2 per cent due to lower prices of tea leaf (blended), coffee powder and gur, oil cakes, processed prawn, maida, tea leaf (unblended), sugar, gingelly oil, tea dust (blended), mustard & rapeseed oil, sunflower oil and tea dust (unblended).  However, the prices of gram powder (besan), groundnut oil, copra oil, gola (cattle feed) and wheat flour (atta), ghee, rice bran oil, bakery products, soyabean oil, palm oil and sooji (rawa) moved up.

The index for the 'beverages, tobacco and tobacco products' group rose 0.1 per cent due to higher prices of dried tobacco. However, the price of rectified spirit declined.

Inflation rate for the 'textiles' group declined by 0.1 per cent due to lower prices of jute sacking bag, jute sacking cloth and tyre cord fabric. However, the price of gunny and hessian cloth and manmade fabric moved up.

Inflation rate for the 'wood and wood products' group declined by 2.0 per cent due to lower prices of timber / wooden planks and plywood & fibre board and processed wood.

The index for 'paper and paper products' group rose 0.4 per cent due to higher prices of printing and writing paper, paper rolls, cream laid woven paper and maplitho paper. However, the price of corrugated sheet boxes and newsprint declined.

Inflation rate for the 'leather and leather products' group declined by 0.7 per cent due to lower price of leathers.

Inflation rate for the 'chemicals and chemical products' group declined by 0.1 per cent due to lower prices of diammonium phosphate, turpentine oil, ammonium sulphate, non-cyclic compound and rubber chemicals. However, the prices of synthetic resin, lacquer and varnishes and basic organic chemicals moved up.

Inflation rate for the 'non-metallic mineral products' group declined by 0.3 per cent due to lower prices of asbestos corrugated sheet and grey cement. However, the price of marbles and white cement moved up.

Inflation rate for the 'basic metals, alloys and metal products' group rose 0.8 per cent due to higher prices of ferro chrome, plates and GP / GC sheets, lead, CRC and HRC, wire rods, steel castings, sheets, joist and beams and rounds, angles,  rebars, steel rods, steel: pipes & tubes, pencil ingots, melting scrap, aluminium and ferro silicon. However, the price of gold and gold ornaments, silver and pipes / tubes / rods / strips and pig iron, billets and iron castings declined.

Inflation rate for the 'machinery and machine tools' group rose 0.1 per cent due to higher prices of PVC insulated cable and fibre optic cable. However, the prices of ball / roller bearing and engines declined.

Inflation rate for the 'transport, equipment and parts' group rose 0.1 per cent due to higher prices of auto rickshaw / tempo / matador.

The final inflation rate for October 2016 based on the revised (final) wholesale price index for 'all commodities' (Base: 2004-05=100) stood at 3.79 per cent against the provisional figure of 3.39 per cent reported earlies, CSO stated in its release.





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