India's wholesale price inflation, based on the official wholesale price index (WPI) declined to 3.85 per cent in April compared to 5.29 per cent in March 2017, provisional data released today showed. WPI inflation stood at a low of (-) 1.09 per cent in April last year.
Build-up of inflation in the financial year so far was (-) 0.18 per cent compared to a build-up rate of 1.21 per cent in the corresponding period of the previous year.
Inflation rate for the `primary articles' group, which has a weight of 22.62 per cent in the wholesale price index, rose 0.4 per cent in April 2017.
Among primary articles, inflation rate for the 'food articles' group rose 0.6 per cent in April 2017 due to higher price of beef and buffalo meat, tea, peas/chawali, moong, fruits and vegetables, poultry chicken and pork and masur, arhar, bajra, gram and milk. However, the price of barley, betel leaves, egg, ragi, wheat, urad and condiments and spices declined.
Inflation rate for the 'non-food articles' group declined by 0.3 per cent due to lower prices of raw jute, rape and mustard seed, raw rubber and floriculture, raw cotton and sunflower and cotton seed. However, the prices of castor seed, copra (coconut), guar seed, raw silk, groundnut seed, soyabean and mesta, safflower (kardi Seed), gingelly seed and fodder moved up.
Inflation rate for the`fuel and power' group (weight of 13.15 per cent in WPI) declined by 1.9 per cent due to lower prices of naphtha and furnace oil, aviation turbine fuel (ATF), petrol, high speed diesel (HSD) and bitumen, kerosene and LPG. However, the prices of coking coal and petroleum coke moved up.
Inflation rate for the `manufactured products'' group (weight of 64.23 per cent in WPI) remained unchanged at its previous month level of 112.1 (provisional).
Among manufactured products, inflation rate for for 'manufacture of food products' group declined by 0.1 per cent due to lower prices of molasses, soyabean oil, spices (including mixed spices), maida, gram powder (besan) and sunflower oil. However, the price of salt and mustard oil, powder milk, basmati rice, gur, bagasse and castor oil moved up.
Inflation rate for 'manufacture of beverages' group rose 0.1 per cent due to marginal increase in price of bottled mineral water.
Inflation rate for 'manufacture of tobacco products' group declined by 0.1 per cent due to lower prices of other tobacco products. However, the price of bidi and cigarette moved up.
Inflation rate for the 'manufacture of textiles' group rose 0.2 per cent due to higher prices of fabric, polyethylene, bed linen/bed spread and cotton dyed/printed textile. However, the prices of woolen woven cloth, terry towel and carpets and other floor coverings of textiles declined.
Inflation rate for the 'manufacture of wearing apparel' group rose 0.6 per cent due to higher prices of wearing apparel, except fur apparel.
Inflation rate for 'manufacture of leather and related products' group rose 0.2 per cent due to higher prices of waterproof footwear and canvas shoes and gloves of leather.
Inflation rate for the 'manufacture of wood and products of wood and cork' group rose by 0.3 per cent due to higher prices of wooden panels, lamination wooden sheets/veneer sheets.
Inflation rate for the 'printing and reproduction of recorded media' group declined by 0.4 per cent due to lower price of hologram (3D) and printed form and schedule, printed labels/posters/calendars and newspaper.
Inflation rate for the 'manufacture of chemicals and chemical products' group declined by 0.2 per cent due to lower prices of poly propylene (PP), mono ethyl glycol and oleoresin, insecticide and pesticide, phthalic anhydride and polyester film (metalised), explosives, safety matches, poly vinyl chloride (PVC), liquid air and other gaseous products, sodium silicate, plasticizer, ethylene oxide, organic solvent and catalysts. However, the price of XLPE compound, adhesive tape (non-medicinal) and hydrogen peroxide and ammonia gas, ammonium phosphate, camphor, sulphuric acid, powder coating material, acrylic fibre, agro chemical formulation, paint and shampoo moved up.
Inflation rate for the 'manufacture of pharmaceuticals, medicinal chemical and botanical products' group rose 0.1 per cent due to higher prices of ayurvedic medicaments and digestive enzymes and antacids, However, the price of antipyretic, analgesic, anti-inflammatory formulations declined.
Inflation rate for 'manufacture of other non-metallic mineral products' group rose 0.1 per cent due to higher prices of porcelain crockery. However, the price of marble slab declined.
Inflation rate for 'manufacture of basic metals' group rose 0.1 per cent due to higher prices of aluminium powder and MS bright bars, stainless steel bars and rods, including flats, aluminium castings, lead ingots, bars, blocks plates and MS castings. However, the price of brass metal/sheet/coils, copper metal/copper rings and copper shapes-bars/rods/plates/strips declined.
Inflation rate for 'manufacture of fabricated metal products, except machinery and equipment' group declined 0.6 per cent due to lower of electrical stamping- laminated or otherwise, stainless steel razor and steel drums and barrels, steel container and steel door. However, the price of jigs and fixture moved up.
Inflation rate for 'manufacture of computer, electronic and optical products' group rose 0.1 per cent due to higher prices of microscope and watch.
Inflation for 'manufacture of electrical equipment' group rose 0.1 per cent due to higher prices of PVC insulated cable and light fitting accessories, aluminium/alloy conductor, air coolers, fluorescent tube, electrical relay/conductor, generator parts, batteries and electric mixers/grinders/food processors etc. However, the prices of microwave oven and connector/plug/socket/holder-electric, rubber insulated cables and electric filament type lamps, ACSR conductors and insulating and flexible wire declined.
Inflation rate for 'manufacture of machinery and equipment' group rose 0.1 per cent due to higher prices of pressure vessels and tanks for fermentation and other food processing and evaporator, soil preparation and cultivation machinery (other than tractors), sugar machinery, chillers and pharmaceutical machinery. However, the price of solar power system (solar panel and attachable equipment) and filtration equipment, hydraulic pump and threshers declined.
Inflation rate for 'manufacture of other transport equipment' group declined by 1.6 per cent due to lower prices of motor cycles.
Inflation rate for 'manufacture of furniture' group rose 0.2 per cent due to marginal increase in the price of plastic fixtures.
Inflation rate based on the wholesale food index (Weight of 24.38 per cent in WPI), which consists of 'food articles' from the primary articles group and 'food product' from the manufactured products group decreased from 5.50 per cent in March 2017 to 2.90 per cent in April 2017.
The final inflation rate based on the final wholesale price index of all commodities for February 2017 (BASE YEAR: 2004-05=100), remained unchanged at its provisional level of 6.55 per cent respectively as of 14 February 2017.
The government periodically reviews and revises the base year of the macroeconomic indicators as a regular exercise to capture structural changes in the economy and improve the quality, coverage and representativeness of the indices.
The government has, meanwhile, revised the base year of All-India WPI from 2004-05 to 2011-12in order to align itself with the base year of other macroeconomic indicators like the Gross Domestic Product (GDP) and the Index of Industrial Production (IIP).
The WPI series in India has undergone six revisions in 1952-53, 1961-62, 1970-71, 1981-82, 1993-94 and 2004-05 so far. The current series is the seventh revision. The revision entails shifting the base year to 2011-12 from 2004-05, changing the basket of commodities and assigning new weights to the commodities. It has generally been the practice to undertake the revisions on the advice of a Working Group constituted each time.