India's wholesale price inflation zooms to 5.25% as retail inflation cools

news
14 February 2017

India's annual rate of inflation based on wholesale price index rose to 5.25 per cent in January 2017 from 3.39 per cent in December 2016, provisional data released today showed.

This is in contrast to a declining trend in retail inflation, which plunged to a five-year low of 3.17 per cent in January (See: Consumer price inflation hits a 5-year low of 3.17% in January). According to the wholesale price index (WPI) data released by the commerce and industry ministry, the annual inflation rate of inflation was (-) 1.07 per cent in January 2016.

The buildup of inflation rate in the financial year so far was 5.31 per cent against a build-up of (-) 0.40 per cent in the corresponding period of the previous year.

Inflation rate for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, declined by 0.2 per cent year-on-year in January 2017.

Inflation rate for the 'food articles' group declined by 1.1 per cent due to lower prices of arhar, gram, masur, urad, moong, egg, fruits and vegetables, tea, rice, bajra and wheat. However, the prices of jowar, ragi and poultry chicken, fish and condiments and spices, maize, pork, fish and beef and buffalo meat moved up.

Inflation rate for the 'non-food articles' group rose 2.5 per cent due to higher prices of flowers, raw rubber, copra and raw cotton, raw silk, sunflower, castor seed and safflower (kardi seed) and soyabean. 

However, the prices of mesta, gingelly seed, cotton seed, linseed, coir fibre, rape and mustard seed and niger seed, raw wool and hides declined.

Inflation rate for the `minerals' group rose 1.0 per cent due to higher prices of manganese ore, copper ore and magnesite, iron ore, sillimanite and phosphorite  and chromite. However, the price of crude petroleum declined.

Fuel and power (Weight 14.91%)
The inflation rate for the `fuel and power group (weight of 14.91 in WPI) rose 4.7 per cent due to higher prices of coking coal, aviation turbine fuel, furnace oil, high speed diesel and petrol, bitumen and kerosene.

The rate for the `manufacturing products' group, which has the highest weight of 64.97 per cent in the WPI, rose 0.5 per cent in January 2017.

Among manufactured products, inflation rate for the 'food products' group rose 0.4 per cent due to higher prices of maida and coffee powder, soyabean oil, rice bran oil, processed prawn and gur, copra oil, khandsari, wheat flour (atta), sugar, ghee and palm oil.  However, the prices of tea leaf (blended), tea dust (unblended)  and oil cakes, powder milk and gola (cattle feed) and mixed spices and mustard and rapeseed oil declined.

The inflation rate for the 'textiles ' group rose 0.5 per cent due to higher prices of gunny and hessian cloth, cotton yarn and jute sacking cloth, tyre cord fabric and manmade fabric. However, the price of jute sacking bag declined.

The inflation rate for the 'wood and wood products' group declined by 0.6 per cent in January 2017 due to lower prices of timber / wooden planks.

The inflation rate for the 'paper and paper products' group rose 0.4 per cent due to higher price of newspaper.

The inflation rate for the 'leather and leather products' group declined by 0.4 per cent due to lower prices of leather garments and jackets and leather.

The inflation rate for the 'rubber and plastic products' group rose 0.1 per cent due to higher prices of expandable polystyrene, polyester film and HDPE bag and plastic/PVC shoes and HDPE  woven fabric. However, the prices of plastic cabinet, plastic components / accessories and plastic/LDPE/polythene bag and HDPE woven sacks and other rubber products declined.

the inflation rate for the 'chemicals and chemical products' group rose 0.1 per cent due to higher prices of basic organic chemicals, vaccines and photographic goods.  However, the prices of synthetic resin, hair / body oils and diammonium phosphate, adhesive and  gum and antibiotics declined.

The inflation for the 'non-metallic mineral products' group declined by 0.4 per cent due to lower prices of marbles and polished granite. However, the prices of      railway sleeper and asbestos corrugated sheet moved up.

The inflation rate for the 'basic metals, alloys and metal products' group rose 2.3 per  cent during January 2017 due to higher prices of billets, ferro chrome, pipes/tubes/rods/strips, pig iron, wire rods, plates, GP/GC sheets, HRC, pencil  ingots and melting scrap, sponge iron, lead, angles, rebars, CRC, zinc and steel structures, gold and gold ornaments and joist and beams and utensils (other than aluminium), rounds, metal containers, steel: pipes and tubes, sheets and silver.  However, the prices of pressure cookers declined.

The inflation rate for the 'machinery and machine tools' group declined by 0.1 per cent due to lower prices of machine tools, pump and assembly and fibre optic cable.  However, the prices of fluorescent tubes and conductor, computer peripherals, ball/roller bearing, lamps and earth moving machinery moved up.

The inflation rate for the 'transport, equipment and parts' group declined by 0.1 per cent due to lower price of tractors.

The final inflation rate for November 2016 based on the revised wholesale price index stood at 3.38 per cent against the earlier estimated 3.15 per cent.





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